HEALTHY GROWTH: Glomac is set to see encouraging earnings boost from its growing unbilled sales, contributed by the township projects.
KUCHING: Glomac Bhd (Glomac) is set to see encouraging earnings boost from its growing unbilled sales, contributed by the township projects.
According to the RHB Research Institute Sdn Bhd (RHB Research) in a research note yesterday, Glomac’s third quarter results for the financial year 2013 (3QFY13) came in within expectations.
Earnings were mainly from the progress billings of Glomac Damansara, Reflection Residences, Bandar Saujana Utama and Saujana Rawang, the research firm noted.
“Compared with 10 per cent sequential growth, the first nine months of FY13 (9MFY13) profit before tax (PBT) contracted five per cent, as FY12 earnings were lifted by the one-off RM9 million gain from the disposal of a warehouse in Thailand, as well as the cost savings arising from the completion of Glomac Tower last year,” it explained further.
Additionally, it outlined, Glomac achieved RM136 million sales in 3QFY13, compared with RM171 million sales in 2QFY13.
“The township projects such as Saujana Utama and Saujana Rawang are the key contributors, making up more than half of the total,” RHB Research said.
It further opined, “We expect Glomac to end the year with RM750 million to RM800 million sales. The recent booking for the launch of Lakeside Residences will be converted into sales in 4QFY13.”
Furthermore, the research firm noted response for Glomac’s new Lakeside Residences township project in Puchong had been encouraging with the first two phases fully sold within a day through balloting process.
“The next phase comprising 75 units terraces will be launched in the next weekend. Selling prices have seen a gradual step-up of about of five to 10 per cent by phases.
“The terraces in the coming launch will be priced at about RM800,000. Meanwhile, sales at Glomac Centro, comprising 54 units shop offices and 344 units serviced apartments, were improving gradually with the latest take-up rate at 51 per cent, after the connectivity is enhanced,” RHB Research explained.
Meanwhile, cautious on the possible impact of the upcoming general election, the research firm maintained a neutral outlook and derived the fair value at an unchanged RM0.93 per share, based on 35 per cent revised net asset value.