Glomac to launch new projects with RM216m GDV


GLOMAC Bhd plans to launch new projects with gross development value (GDV) of RM216 million in the second half of the financial year ending April 30, 2022 (2HFY22), while maintaining a cautious outlook on the back of property overhang due to the pandemic. 

Glomac MD and CEO Datuk Seri Fateh Iskandar Mohamed Mansor said the new launches are targeted at mid-market affordable landed residential products in its existing township developments. 

He clarified that the property company had to hold its launches for high-rise projects in view of rising building material prices, including steel and cement, coupled with the shortage of labour in the market.

“We are already looking at contractors not wanting to tender. It is already happening. We do have the product to launch but right now our normal contractor that usually tender for our jobs tells us they are revaluating the material prices. They are looking for a time to tender maybe after Chinese New Year. 

“The price of steel and cement did not go down to pre-Covid-19 levels. But I am more concerned about the import of materials including copper, aluminium and even lifts from Germany, Japan and Taiwan. With markets all over the world just opening up, there is pent up demand not only for construction but everything else,” he told reporters during Glomac’s second quarter ended Oct 31, 2021 (2QFY22) financial results virtual briefing yesterday. 

The new launches include Saujana Perdana development with GDV of RM44.5 million, Saujana Utama 5 (RM23.9 million), Saujana KLIA (RM122 million) and Saujana Jaya, Johor (RM25.5 million). 

Glomac recorded net profit of RM11.52 million for the 2QFY22 compared to a net profit of RM8.4 million in 2Q21 due to various phases of Movement Control Order. Its revenue for the period slipped 27.93% YoY to RM75.39 million. 

Glomac’s balance sheet remains healthy. As at Oct 31, 2021, net gearing improved to 0.23 times from 0.25 times at the start of the financial year, while cash and cash deposits totalled RM214.5 million, providing ample liquidity to further drive its development activities.

The group’s net assets per share was slightly higher at RM1.47. Glomac achieved new sales of RM48 million for 1HFY22 mainly carried by its affordable landed homes in Saujana Perdana in Sungai Buloh, Selangor .

Glomac’s near term earnings visibility is well supported by its unbilled sales of RM526 million and the resumption of construction activities. 

Going forward, the group remains cautious of overhanging uncertainties from the pandemic that may dampen sentiment, even as optimism grows with the re-opening of the economy. 

Glomac is comfortably holding a portfolio of prime development landbank with potential GDV of about RM8 billion. Given its healthy balance sheet, the group is able to easily accelerate its development activities and drive long term growth when sentiment improves. 

On its diversification into the data centre market, Fateh Iskandar said the group is revaluating whether it should do it now or not, considering data centre construction costs involve a lot of imported material. 

“We were talking to two parties previously, but one party because of Covid-19 decided not to pursue it while another party is still talking to us,” he said. 

The Malaysian Reserve previously reported that Glomac had planned to include data centres as its investment properties to diversify its income streams amid the dismal state of the retail property market.