KUALA LUMPUR: Glomac Bhd targets to launch property projects with gross development value (GDV) of RM216 million in the second half (2H) of financial year ending June 30, 2022 (FY22)

Group managing director and chief executive officer Datuk Seri FD Iskandar said moving into the later part of the financial year, the company will be focusing on mid-market affordable landed residential products in existing township developments.

These projects are Saujana KLIA, Saujana Perdana, Saujana Utama 5 and Saujana Jaya in Johor.

Without disclosing the initial target numbers, FD Iskandar said the GDV for the new launches is lower than what was initially targeted.

"Originally, we want to do a bit more (launches). Out of our RM216 million projects that we planned to launch in the 2H, all landed residential projects.

"This is so as for mid-market affordable landed residential products, we already almost certain about the cost of main components like steel and cement.

"We pulled back our high rise launches because we are still unsure of the fibre prices, aluminium prices - for lifts, for instance," he told reporters at Glomac 1H financial results virtual briefing today.

For the Q2 ended October 31, 2021, Glomac's net profit increased 37.3 per cent to RM11.52 million from RM8.39 million, aided by improved gross profit margin.

The company said contributing developments to the net profit for the quarter include Saujana Perdana, Plaza@ Kelana Jaya, 121 Residences, Lakeside Boulevard and Sri Saujana in Johor.

Revenue in the same quarter decreased 27.9 per cent to RM75.39 million from RM104.61 million, mainly due to various phases of Movement Control Order (MCO).

FD Iskandar said for 1H, the company achieved new sales of RM48 million, impacted by earlier MCO restrictions and lack of newly launched in the period.

For the cumulative six-month period, Glomac's net profit increased 23.1 per cent to RM13.25 million from RM10.77 million, while revenue eased 31.2 per cent to RM104.23 million from RM151.49 million.

Glomac's near term earnings visibility is well supported by its unbilled sales of RM526 million and the resumption of construction activities.

"Going forward, the company remains cautious of overhanging uncertainties from the pandemic that may dampen sentiment, even as optimism grows with the re-opening of the economy," it said.

Nonetheless, Glomac comfortably holds a prime development landbank portfolio with a potential GDV of about RM8 billion.

"Given its healthy balance sheet, Glomac can easily accelerate its development activities and drive long term growth when sentiment improves," it added.

As of October 31, 2021, Glomac's net gearing improved to 0.23x from 0.25x at the start of the financial year, whilst cash and cash deposits totalled RM214.5 million, providing ample liquidity to drive its development activities further.

The company's net assets per share was slightly higher at RM1.47.