KUALA LUMPUR: Glomac Bhd expects its earnings performance in the current financial year to remain modest.
This reflects lower property sales brought on by a more measured pace in past launches, Glomac group executive chairman Tan Sri FD Mansor said.
Glomac’s net profit was down 92.27 per cent to RM1.4 million in the second quarter (Q2) ended October 31, 2017, from RM18.25 million a year ago.
The latter profit was mainly due to the recognition of a one-off government grant received amounting to RM26.3 million.
In an exchange filing today, Glomac said its revenue for the quarter had risen 30 per cent to RM109.93 million from RM83.99 million previously. This was contributed by properties project in Saujana KLIA, Lakeside Residence and Saujana Perdana.
In a separate statement, FD Mansor said ongoing projects, predominantly terrace houses within Glomac’s landed residential developments and affordable townships, are almost fully sold.
New launches in financial year ending 2018, with a collective estimated gross development value (GDV) of RM785 million, will bear the same focus, capitalising on Glomac’s strengths in delivering quality housing at affordable prices to the mass market segment.
“The overall property market may remain subdued. Key emphasis for Glomac heading into the second half of this year is to successfully launch its new projects, and deliver stronger sales performance to enhance the group’s earnings visibility,” he said.
He added that its longer term sales growth remains resilient, as beyond the current financial year, it maintains a strong pipeline of development products with potential GDV of more than RM8 billion to further tap into demand in the mass market segment.