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This article first appeared in The Edge Financial Daily on November 28, 2018

KUALA LUMPUR: 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 yesterday, 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 its 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. 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 lesser ongoing phases during the period. For the remaining parts of the financial year ending April 30, 2019, the group expects a very challenging performance even with the planned future launches for the year. “The group will step up the pace of new launches during 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.

“We expect to build on the strong momentum from an 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 had secured a big-name international retailer for Glo Damansara Mall, expected to increase its occupancy to 77%. “It is a major player in North Asia and will be introducing a new lifestyle concept fresh to the region and also boost Glo Damansara Mall’s profile and vibrancy. The concept store is slated to start operations in the first half of 2019.”

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