KUALA LUMPUR (June 25): Hong Leong IB Research has maintained its “Hold” rating on Glomac Bhd with a lower target price of 86 sen (from RM1.04) and said Glomac’s 4QFY15 increased by 25% quarter-on-quarter bringing FY15 PATAMI to RM86.7 million, accounting for 103% and 110% of ours and consensus’ estimates, respectively.

Glomac declared final dividend of 2.25 sen/share bringing full year dividend to 4.25 sen/share (vs. 4.9 sen in FY14).

In a note today, HLIB Research said Glomac’s sales surged strongly in 4QFY15 to RM420 million (versus RM26 million in 3QFY15) bringing full year’s sales to RM506 million, meeting company sales target of RM500 million.

It said this was mainly driven by sizeable new launches with total gross development value (GDV) of RM463 million.

“Centro V project (comprise of 394 service apartments and 18 units shop office) with GDV of RM263 million has been postponed from 4QFY15 to 2H16.

“For FY16, the group plans to launch RM802 million (versus RM577 million in FY15) of projects and achieve sales of RM600 million.

“Target price is lowered from RM1.04 to RM0.86 after we raised discount to RNAV from 40% to 50% mainly to factor in softer market condition and deferment of launches for the past 2 financial year.

“Maintain Hold on the stock with dividend yield of 5.5%,” it said.