KUALA LUMPUR: Glomac Bhd’s net profit surged to RM5.59 million in the second quarter (Q2) ended October 31, 2019 from RM1.06 million recorded in the same quarter a year ago.
Its revenue increased 10.3 per cent to RM61.51 million from RM55.76 million recorded last year.
For the six months, Glomac’s net profit jumped to RM9.05 million from RM2.03 million, while revenue increased marginally to RM113.38 million from RM113.37 million.
Glomac said the better financial performance was underscored by the strengths of its development products, which are suitably targeted at the affordable and mid-market segments.
Ongoing phases in Glomac’s township and residential developments, such as Lakeside Residences, Saujana KLIA and Saujana Perdana, continued to be well taken up.
“Revenue contribution was largely derived from Saujana Perdana, Saujana KLIA and Sri Saujana in Johor. New project phases such as Plaza@Kelana Jaya, Saujana Jaya at Johor, Saujana Rawang and Lakeside Boulevard’s shop offices at Puchong have also started contributing,” the property developer said in a statement today.
Glomac expects its sales momentum to sustain, driven by continuing sales from ongoing projects as well as new launches of terrace houses and townhouses with estimated gross development value (GDV) of RM213 million at Saujana Perdana in the second half of the year.
It said emphasis would be on driving sales from high rise residential projects such as Plaza@Kelana Jaya and 121 Residences.
It said Glo Damansara Mall was enjoying higher footfalls with the entry of new tenants such as Samanea Malaysia by LESSOHOME, a premium Home Living Centre, incorporating Lazada’s Online Product Experience Centre, and Jaya Grocer supermarket together with its Bonjour Garden Café.
“New brands are being added into the tenancy mix to further improve on the mall’s vibrancy,” it added.
Glomac said while the property market was likely to remain challenging, the group would continue to strategise in introducing suitable products that will appeal to its market segments.
It said longer term, the company commands a strong development portfolio with a potential estimated GDV of RM8 billion to accelerate its development activities when market conditions improve.