PETALING JAYA: Glomac Bhd’s is expected to launch properties within its existing townships with a total gross development value (GDV) of RM79.5mil in the fourth quarter of its financial year 2022 (FY22).

       According to TA Research, Glomac’s latest unbilled sales of RM513mil may provide the group with earnings visibility over the next 12 to 18 months.

       The research firm maintained its “buy” call on the company with an unchanged target price of 44 sen per share.

       Glomac rolled out two projects with a GDV of RM64.5mil in the first nine months of FY22, which are nearly sold out.

       The group’s remaining GDV of RM8bil within the Klang Valley is believed to accelerate its new launches once market sentiment improves.

       The group is said to be focusing on the mid-market and affordable segment as the group expects its landed residential products to contribute to steady sales.

       “The group’s balance sheet is healthy, with its latest net gearing remaining steady at 0.26 times with a cash balance of RM194mil,” TA Research said.

       Glomac’s total new property sales amounted to RM77mil for the first nine months of FY22. In the third quarter of its financial year 2022 (Q3’FY22), Glomac Bhd saw a 51% lower year-on-year (y-o-y) new property sales but a growth of 61% quarter-on-quarter (q-o-q) to RM29mil.

       Meanwhile, the group’s net profit for Q3’FY22 fell 30% q-o-q to RM8.1mil from RM11.5mil in the previous quarter largely due to lower margin and higher share of losses of associates.

       “The group’s revenue declined 26% y-o-y to RM185.9mil in the first nine months of FY22, dragged by a poor Q1’FY22 owing to lockdown restrictions.

       “Compared to the top line, the first nine months of FY22 net profit fell by a smaller amount of 6% y-o-y to RM21.4mil,” said the research firm in a report.

       Even so, the group’s net profit of RM21.4mil in the first nine months of FY22 exceeded the research firm’s expectations, accounting to 79% of full-year earnings estimates.