PETALING JAYA: Glomac Bhd is confident of surpassing financial year 2024’s (FY24) new property sales of RM360mil despite achieving only RM162mil as of the nine- month period of FY25 (9M25).

According to TA Research, this optimism is supported by the encouraging response to the new phases of shop offices launched at Saujana Perdana in last December, which recorded over a 50% take-up rate.

“This is expected to anchor the fourth quarter of FY25 (4Q25) sales, contributing approximately RM65mil,” said TA Research in a report.

Looking ahead, the group is preparing to launch three new projects in 4Q25 with a combined gross development value of RM298mil. Registration of interest has already begun, with early bookings of around RM50mil secured, the research firm said.

However, the property developer’s Loop City Residences, which was launched in April 2024, has experienced a slow start with the take-up rate remaining stagnant at just 9%. Loop City Residences, the first phase of the broader 15.3-acre Loop City Development, comprises 980 SoHo and serviced apartment units priced at an average of RM320,000 each.

“The weak momentum is largely attributed to stiff competition from surrounding high-rise projects in the Puchong area.

“To reinvigorate interest, Glomac plans a large-scale relaunch after the Hari Raya holidays, supported by aggressive marketing campaigns. Management is targeting a take-up rate of 50% to 60% by end-2025.”

According to TA Research, Glomac is also preparing to ramp up its development pipeline, with plans to increase annual launches to RM700mil to RM800mil from FY26 onwards, up from RM400mil to RM500mil in FY25.

At the same time, the group is actively exploring strategic land acquisitions, particularly in high-demand areas such as the Klang Valley. The focus is on land suitable for quick-turnaround high-rise developments.

With a low net gearing of just 0.03 times versus the sector average of 0.4 times, Glomac is well-positioned to capitalise on these opportunities and support its long-term growth ambitions.

TA Research said execution is key to achieving its sales target and said that Glomac’s target appears optimistic.

“With only RM162mil in new sales recorded as of 9M25, we believe achieving more than RM360mil this year may prove challenging, even with the support from Saujana Perdana and the upcoming launches.

“As such, we maintain our conservative FY25 sales forecast of RM280mil.”

The research firm is maintaining the group’s earnings estimates, supported by Glomac’s unbilled sales of RM475mil, which provide earnings visibility over the next 12 to 18 months.

Valuation-wise, it reiterated its “hold” rating on Glomac with an unchanged target price of 38 sen based on a 2025 price-to-book multiple of 0.24 times.

Source: The Star Malaysia (www.thestar.com.my)