Press Release: Glomac 2Q FY21 Profit Before Tax Jumped 56% to RM14.3 million
Glomac Berhad (‘Glomac’ or ‘the Group’) today announced its unaudited results for the second quarter of its current financial year ending 30 April 2021.
Group revenue surged 70% to RM104.6 million, translating to 56% increase in profit before tax to RM14.3 million in the quarter under review. The stronger performance was driven by resumption of construction activities post-MCO and consequently, higher progress billings from Glomac’s ongoing projects such as Saujana Perdana at Bandar Saujana Utama, Plaza@Kelana Jaya, Saujana Rawang and 121 Residences.
For the 6-month period, profit before tax rose 41% to RM19.6 million on the back of 34% increase in group revenue to RM151.5 million.
Glomac’s balance sheet remains healthy, providing ample liquidity to further drive its development activities. As at 31 October 2020, net gearing sustained at a low of 0.28x, whilst cash and cash deposits totaled RM246.3 million, improved from RM176.5 million reported as at 30 April 2020. The Group’s net assets per share also rose to RM1.44.
Glomac achieved steady sales in the quarter. Notably, Tresna Triandra, the new phase of double-storey terrace houses launched in Saujana Perdana in July this year was overwhelmingly received, delivering 74% sales within 3 months of launch.
New sales in the 2nd half of the financial year is expected to pick up as the Group rolls out the bulk of RM403 million planned launches, concentrating on new phases of affordable landed residential phases in Glomac’s thriving townships. Substantial ongoing phases of Glomac’s landed residential products are almost fully sold. Fuelling into current demand, the Group launched its Mawar Sari double-storey terrace houses at Saujana Perdana on 14 November, comprising 120 units with built-up of 1,815 sq ft.
The property market remains challenging amidst the ongoing stages of Movement Control Orders in the country. Adapting to the current environment, Glomac has initiated aggressive digital marketing campaigns to complement its conventional sales strategies and to effectively boost sales. Virtual apps and virtual show units were introduced, plus more recently, a 3-month HappyNest digital campaign was rolled out, enticing buyers with weekly cash vouchers and monthly prize draws. The Group is also collaborating with the Maybank Islamic HouzKEY home financing solutions to provide more benefits to buyers, offering 100% financing, non-payment during construction period and competitive rates with low monthly payments.
Glomac’s near term earnings visibility is supported by healthy unbilled sales of RM649 million. This will be replenished further with improving sales from Glomac’s ongoing projects as well as upcoming new launches. Going forward, the Group’s development activities will be fortified by a strong portfolio of prime development landbank with potential estimated GDV of RM8 billion.
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