Glomac 4Q net profit up 80%, has RM588m unbilled sales

Glomac Bhd’s fourth quarter net profit surged as the property developer raked in a higher revenue and share of profits from associate companies.

In a statement to the exchange yesterday, Glomac said net profit in the fourth quarter ended April this year rose 79.8% to RM12.46 million, or 4.23 sen a share, from RM6.93 million or 2.46 sen a share, a year earlier. Revenue climbed 11.6% to RM104.46 million from RM93.58 million.

Glomac’s profit before tax for the quarter rose 72.8% to RM24.24 million from RM14.03 million.

Cumulative full year net profit rose 27.4% to RM40.75 million from RM31.98 million, while pre-tax profit jumped 32.2% to RM74.37 million from RM56.24 million. Revenue fell 7.9% % to RM317.85 million from RM345.27 million. Earnings per share increased from 11.4 sen to 13.92 sen.

The developer declared a dividend of 4.5 sen a share, resulting in a full-year dividend payout of 8.5 sen a share, up from the previous year’s seven sen a share. That translates to a full year dividend yield of 6.7%.

In a separate statement, Glomac group executive chairman, Tan Sri F D Mansor said the property developer’s financial performance was expected to improve, helped by the company’s locked in sales, upcoming property launches and landbank expansion.

“Our unbilled sales of RM588 million as at the end of April 2010 are a record high for Glomac. Together with a healthy balance sheet and a pipeline of prime projects we are targeting to launch over the next two years, the group is well poised for significant growth.” F D Mansor said.

Unbilled sales refer to the value of properties sold which have yet to be recognised in a developer’s books. Glomac, which sold RM508 million worth of properties in FY10, had a pipeline of projects worth RM1.8 billion to be launched over the next two financial years, F D Mansor said.

Analysts said Glomac was targeting to increase FY11 net profit by 25%, helped by the developer’s record unbilled sales and favourable product mix.

Shares of Glomac fell four sen to RM1.26 yesterday. Year to date, the stock has fallen 6.7%, underperforming the FBM KLCI, which rose 3.7%. Glomac’s net assets per share stood at RM1.88 as at end- April this year.


This article appeared in The Edge Financial Daily, June 30, 2010.