Glomac 4QFY22 net profit jumps almost threefold as project margins improve

TheEdge Wed, Jun 29, 2022 08:32pm - 1 year View Original


KUALA LUMPUR (June 29): Property developer Glomac Bhd's net profit jumped almost threefold to RM15.11 million for the fourth quarter ended April 30, 2022 (4QFY22) from RM5.46 million a year ago — despite weaker revenue — as project margins improved.

In a filing with Bursa Malaysia, the group reported that revenue fell 37% to RM73.59 million for 4QFY22 from RM116.03 million a year ago due to lower construction activities.

Earnings per share for the quarter grew to 1.97 sen, from 0.71 sen previously. The group proposed a dividend of 1.5 sen per share, up from one sen previously, subject to shareholders approval at its upcoming annual general meeting.

For the full FY22, the group's net profit grew 29% to RM36.49 million from RM28.22 million in FY21, despite revenue dropping 29% to RM259.49 million from RM366.91 million.

"Performance was impacted by the pandemic lockdowns in CY2021, but profitability was partly lifted by cost saving initiatives implemented during the financial year," the group said in a separate statement.

"Sales conversion picked up in the fourth quarter as pandemic lockdown eased. Overall, sales momentum for FY2022 launches were healthy.

"New phases of double-storey terrace houses at our ongoing townships are almost all taken up. These include PRIMROSE at Saujana KLIA with gross development value (GDV) of RM33 million and RUMA 33 at Saujana Utama 5 with GDV of RM28.5 million. Launched recently in March 2022, SRI KENANGA at Saujana Perdana, comprising townhouses with GDV of RM44.5 million, also enjoyed a strong response with more than 50% take-up over the short period," Glomac said.

As the economy re-opens, Glomac said it is looking to raise its development activities with RM470 million worth of new launches in FY23 that will remain focused on the affordable mid-market residential segment.

"Notable will be the debut launch at GreenTec Puchong, a 15.3-acre new integrated residential development with a total estimated GDV of RM1.56 billion. Initial phase will include SOHO units and serviced apartments totalling RM312 million that is earmarked for launch in the later part of FY23. Other launches this year include new phases of PRIMROSE double-storey terrace houses at Saujana KLIA and affordable high-rise apartments at Lakeside Residences," it said.

Meanwhile, the group said its unbilled sales of RM542 million provides the group with earnings visibility as construction activities resume following Malaysia's transition into the endemic phase.

"Nonetheless Covid-19 is still amongst us, and there is still a risk of infection cases rising or new variants emerging. Current global events have also led to supply bottlenecks fuelling inflationary pressures, with fear of rising interest rates stifling growth and threatening a global recession. Given these potential concerns, we continue to adopt a cautious stance even as we strive for growth," it added.

Glomac shares closed unchanged at 30.5 sen on Wednesday, giving it a market capitalisation of RM244.03 million.

The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.






Related Stocks

BURSA 7.450
GLOMAC 0.390
KENANGA 1.180

Comments

Login to comment.