Friday 29 Mar 2024
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KUALA LUMPUR (March 14): Glomac Bhd reported a 19.8% decline in its net profit to RM4.31 million in the third financial quarter ended Jan 31, 2018 (3QFY18) from RM5.37 million a year ago, in the absence of cost savings that it saw from finalisation of costs at its Lakeside Residences project in Puchong Jaya, Selangor in 3QFY17.

This resulted in a lower earnings per share of 0.54 sen in 3QFY18, compared with 0.68 sen in 3QFY17.

Revenue for the quarter, however, increased 20% to RM105.13 million from RM87.49 million in 3QFY17.

In a filing with Bursa Malaysia today, the property developer attributed the higher quarterly revenue to contribution from Lakeside Residences, Saujana KLIA in Dengkil and Saujana Perdana in Sungai Buloh.

For the cumulative nine months (9MFY18), the group's net profit dropped 92.8% to RM7.82 million from RM109.16 million a year ago, while revenue fell 26.1% to RM312.55 million from RM422.9 million in 9MFY17.

Glomac blamed decline in profit to a one-off profit recognition for the disposal of land in the previous year.

On prospects for the remaining period ending April 30, 2018, Glomac said the environment will continue to be difficult.

"Even with the planned future launches for the current financial year, the group’s performance for FY18 is expected to be challenging," the filing added.

"In line with prevailing market conditions, Glomac is maintaining its development strategy of focusing on mass market demand. New launches in this segment to-date have been well-received and this momentum is expected to sustain into the foreseeable future," the group said in a separate statement.

Of the group’s targeted new launches amounting to RM542 million in FY18, 90% are landed developments comprising terrace houses, semi-detached and affordable homes. 

Glomac has currently ongoing and future projects totalling RM9 billion in gross development value, which enables it to potentially capitalise on possible recovery in the property market, the statement added.

Glomac shares rose 1.5 sen or 2.94% to close at 52.5 sen today, giving it a market capitalisation of RM416.76 million.

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