KUALA LUMPUR (Sept 22): Glomac Bhd’s earnings for the first quarter ended July 31, 2021 (1QFY22) more than halved as the property developer was impacted by the very difficult operating environment arising from the implementation of movement control order (MCO) 3.0.

Glomac’s 1QFY22 net profit fell 60.66% to RM1.73 million from RM4.39 million a year ago, while revenue slipped 38.47% to RM28.84 million from RM46.87 million last year. Earnings per share dropped to 0.23 sen compared with 0.57 sen previously, the group’s bourse filing showed.

Glomac said this was mainly due to lower revenue contribution from its property development segment. 

“Revenue from property development segment for the period declined by 38% as compared to previous corresponding period, mainly due to the restricted physical construction work for ongoing project phases during the MCO which impacted the progress of construction work. 

“Nevertheless, new launches and ongoing phases such as Saujana Perdana located at Bandar Saujana Utama, Plaza @ Kelana Jaya, Saujana Rawang, Lakeside Boulevard and 121 Residences have contributed to the revenue for the period,” it said. 

As for its property investment segment, Glomac noted that revenue, which mainly comprised car park rental and mall rental income, decreased by 37% as compared to the previous corresponding period as the industry is adversely impacted by Covid-19 and various phases of MCO. 

On prospects, Glomac expects its performance for the financial year ending April 30, 2022 (FY22) to remain challenging as the industry is adversely impacted by Covid-19 and various phases of MCO.

“Notwithstanding the above, the group will continue to take steps to strengthen our online presence and digitalization process. The group is also backed by a sustainable level of unbilled sales of RM580 million and pipeline of new launches for the financial year,” it said.

In a separate statement, Glomac said the group’s balance sheet remains robust, with a cash position of RM189.9 million as at July 31, 2021. Its net gearing stood at a manageable 0.26 times and net assets per share is at RM1.45.

“Glomac will be launching RM282 million of new products this year. This is timely considering that most of the group’s launched residential products are almost sold, and economic restrictions are easing.

“Planned new launches comprise mainly landed residential phases within the mid-market and affordable segments that have continued to garner solid response from our buyers,” it added. 

Glomac is also looking forward to driving its sales momentum, focusing on converting sales from ongoing high-rise residential developments such as Plaza @ Kelana Jaya and 121 Residences, as well as new launches.

“The group remains cautious of the lingering impact from the Covid-19 pandemic on the property market and sentiment. Longer-term prospects, however, remain intact. 

"Given the group’s healthy balance sheet, Glomac is well placed to accelerate development activities, tapping into its strong development pipeline that has a potential estimated gross development value (GDV) of RM8 billion,” it said.

Glomac’s share price dipped 1.47% or half a sen lower to 34 sen today, giving it a market capitalisation of RM263.97 million.