KUALA LUMPUR (Nov 27): Property developer Glomac Bhd's net profit rose 4.9% to RM1.06 million in the second financial quarter ended Oct 31, 2018 (2QFY19) from RM1.01 million a year ago, thanks to cost savings from completed projects.

Earnings per share remained unchanged at 0.13 sen for 2QFY19.

In a statement today, Glomac said gross profit margins improved to 29.3% compared with 21.7% in 2QFY18.

Quarterly revenue, however, dropped 48.6% to RM55.76 million from RM108.56 million a year ago, mainly due to a decline in revenue from property development.

For the cumulative six months (1HFY19), the group's net profit fell 16.7% to RM2.07 million from RM2.49 million a year ago, while revenue also dropped 44.6% to RM113.37 million from RM204.79 million in 1HFY18.

Glomac attributed the weak performance to the completion of certain development phases and fewer ongoing phases during the period.

On prospects for the remaining period of the financial year ending April 30, 2019, the group expects its performance to be very challenging even with the planned future launches for the year.

"The group will step up the pace of new launches during the 2HFY19; bringing the total to RM790 million for the full year," said Glomac.

"The new launches will largely remain in the mid-market and affordable segments while our matured landed residential projects in townships such as Saujana Perdana in Sungai Buloh, Selangor and Saujana Jaya in Kulai, Johor continue to sustain steady sales," it added.

"We expect to build on the strong momentum from the improved take-up at Plaza @ Kelana Jaya as we strive to deliver more sales from our ongoing projects and new launches," it said, adding that its potential developments have a gross development value of more than RM8 billion.

Meanwhile, Glomac said it has secured a big-name international retailer for Glo Damansara Mall that is expected to increase occupancy to 77%.

"The international retailer is a major player in North Asia and will be introducing a new lifestyle concept fresh to the region that will boost Glo Damansara Mall's profile and vibrancy. The concept store is slated to commence its operations in the first half of 2019," it added.

Glomac shares closed up 0.5 sen or 1.22% at 41.5 sen today, with 142,000 shares done, bringing a market capitalisation of RM326.2 million.