PETALING JAYA (June 25): Glomac Bhd shares rose 2.51% to 81.5 sen today on the back of its fourth quarter financial year 2015 results announced yesterday.

At 11.10am, a total of 3.4 million shares were traded.

The stock reached a high of 82.5 sen and a low of 81 sen.

Yesterday, property developer Glomac (fundamental: 1.2; valuation: 2.4) saw its net profit jump 31% to RM29.24 million or 4.06 sen per share for the fourth financial quarter ended April 30, 2015 (4QFY15), from RM22.34 million or 3.07 sen per share a year earlier, due to contributions from its Saujana Rawang, Glomac Centro and Reflection Residences projects.

This was despite a 4% drop in revenue to RM168.41 million from RM174.87 million for 4QFY14, mainly due to the completion of Damansara Residences and near-completion of projects in Bandar Saujana Utama.

For the full FY15, net profit declined 20% to RM86.65 million from RM108.38 million for FY14, while revenue fell 30% to RM472.19 million from RM676.66 million.

The group proposed a final dividend of 2.25 sen per share for FY15, bringing its total dividend payout to 4.25 sen per share for the year.

MIDF Amanah Investment Bank Bhd said in a note today that Glomac’s financial year 2015 (FY15) core net income (CNI) of RM63 million was 15% higher than the research firm’s estimate of RM55 million.

It also accounted for 93% of consensus’ estimate of RM69 million, it added.

The research firm said it had underestimated the margin for Glomac’s property development division.

“Our FY15 new sales estimate of RM485 million was slightly too conservative due to lower take-up rate assumption for landed property projects,” the note read.

“FY15 new sales is also a slight improvement against financial year 2014 (FY14) new sales of RM504 million,” it added.

However, MIDF said FY15’s core net profit declined 32% year-on-year (y-o-y), in line with lower revenue to RM472 million, a decline of 30% y-o-y.

The research firm said the revenue decline was due to the completion of Damansara Residences.

MIDF also noted that Glomac’s share price had tumbled 44% from a peak of RM1.41 on May 21, 2013.

“Hence, we believe that the market may have already priced in the lower FY15 CNI,” it added.

MIDF said it expected Glomac to deliver new sales of RM544 million in FY16, an increase of 8% y-o-y on the back of RM802 million worth of property launches.

“Note that 67% of Glomac’s total launches for FY16 will be landed property,” it added.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)