KUALA LUMPUR: Glomac Bhd’s net profit surged to RM12.14 million in the third quarter (Q3) ended January 31, 2020 from RM1.43 million a year ago.
The property developer said this was due to contribution from higher margin projects and better performance by the property investment segment.
Glomac said the profit was further enhanced by overall administrative cost savings during the period under review.
Its revenue in Q4, however, eased 6.3 per cent to RM74.02 million from RM79.03 million.
It said revenue contribution was largely driven by several key ongoing projects namely Saujana Perdana at Bandar Saujana Utama, Plaza @ Kelana Jaya, Saujana KLIA and Saujana Rawang.
As at January 31, Glomac said its balance sheet remained robust with a cash position of RM172.5 million, while net gearing stood at 0.28x against its shareholders’ funds of RM1.1 billion.
Net assets per share amounted to RM1.42.
“The sequentially stronger financial performance was achievable due to the favorable product mix and strength of Glomac’s development products, which are strategically targeted at the affordable and mid-market segments.
“Ongoing phases in Glomac’s development projects, such as Lakeside Residences and Saujana Perdana, have continued to be well taken up,” it said.
For the nine-month period, Glomac’s net profit jumps to RM21.19 million from RM3.5 million, while revenue decreased 2.6 per cent to RM187.41 million from RM192.4 million.
Glomac said its high-rise residential product offerings were launched with much success and well taken-up by the market.
Plaza @ Kelana Jaya is an integrated freehold residential project with a gross development value (GDV) of RM347 million.
As at January 31, 75 per cent of its residential units have been sold.
Continuing from the success of Plaza @ Kelana Jaya, the recently-launched 121 Residences comprises two towers of serviced apartments and SoHo units in the PJ-Damansara district bearing a total GDV of RM321 million.
The project has the take-up rate of 64 per cent.
Glomac said the group’s performance is expected to sustain, backed by unbilled sales that surged to RM626 million driven by continuing sales from ongoing high rise residential projects such as [email protected] Jaya and 121 Residences.
Glomac said the property market is likely to remain challenging.
It will be adversely impacted by Covid-19 and Movement Control Order.
“Notwithstanding the above, we have taken certain steps and will be taking further steps to circumvent and mitigate the challenges.
“The group will continue to strategise in introducing suitable products that will appeal to its market segments.”
Over longer term, Glomac said it has a strong development portfolio with a potential estimated GDV of RM8 billion to accelerate its development activities when market conditions improve.