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Thursday, October 1, 2009

Glomac sees 15% rise in earnings

PETALING JAYA: Property developer Glomac Bhd hopes to achieve at least 15% increase in earnings when its financial year ends on April 30 (FY10), supported by projects in hand it has now.

For FY09, it reported a 8.12% decline in net profit to RM32.3mil on revenue of RM351.57mil.

From left: Glomac group executive vice-chairman Datuk Fong Loong Tuck, group executive chairman Tan Sri Mohamed Mansor Fateh Din and Datuk FD Iskandar Mohamed Mansor after the AGM

Group managing director/chief executive officer Datuk FD Iskandar Mohamed Mansor said the group currently had in the pipeline property projects with an estimated gross development value of about RM3bil that would last for another five years.

“The five-year period is based on our average launch of about RM600mil in projects a year. We are optimistic of achieving the target figure as we know what our current unbilled sales are now.

“Apart from that, we managed to lower our gearing level to 0.12 times now from 0.35 times and this will certainly help our cashflow to be more positive,” he said after the company AGM yesterday.

On the group’s existing landbank, Iskandar said Glomac had about 400ha for future development and was looking for niche parcels of land to acquire in the Klang Valley.

“We are not looking for bigger (plots of) land. Instead, we are looking for niche land in the Klang Valley as the most important thing is the location. We plan to develop commercial and residential projects if we manage to buy the land,” he said.

He believed the property sector had not fully recovered yet though there was already some pick-up in certain locations.

“Confidence level among the buyers/investors seems to be improving now but only for certain locations. We hope by the second half of next year, the property sector in general will be fully recovered,” he said.

He added that commercial properties were currently picking up based on the recent launch of the group’s commercial projects.

“Our Glomac Damansara and Glomac Cyberjaya for example, received very positive take-up when launched just recently,” he said.

Iskandar also said the group was looking for potential business ventures in the region after setting foot in Thailand and Australia.

For the first quarter ended July 31, Glomac recorded net profit of RM8.3mil on revenue of RM59mil compared with RM7.8mil and RM79.5mil in the previous corresponding period.

By The Star

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