Glomac Berhad

$GLOMAC / 5020 (GLOMAC BERHAD)
Research Report by TA

The implementation of the mandatory Employees Provident Fund (EPF) contributions for foreign workers and higher minimum wage should be given more time, says Glomac Bhd managing director and chief executive officer Datuk Seri Fateh Iskandar Mohamed Mansor.

KUALA LUMPUR: Glomac Bhd is set to launch additional residential projects within its township developments in the financial year 2025 (FY25), with a focus on double-storey homes to enhance earnings.

© New Straits Times Press (M) Bhd

KUALA LUMPUR: Glomac Bhd plans to ramp up its annual project launches to RM800 million starting in the financial year ending April 30, 2026 (FY26), according to group managing director and chief executive officer, Datuk Seri FD Iskandar. 

© New Straits Times Press (M) Bhd

KUALA LUMPUR: Glomac Bhd has described Budget 2025 as considerate, as it focuses heavily on helping young people and first-time homebuyers own their own homes.

© New Straits Times Press (M) Bhd

$GLOMAC / 5020 (GLOMAC BERHAD) 2024 CORP PRESENTATION...

$GLOMAC / 5020 (GLOMAC BERHAD)
Research by TA
BUY – TP RM0.64

" Revving Up for Growth”

To recap, Glomac’s 1QFY25 net profit surged 79% YoY to RM7.3mn, exceeding expectations due to higher development margins. The gross profit margin improved to 31% from 26% a year ago, driven by increased contributions from commercial properties, unlike last year’s lower margin from affordable housing products. Looking ahead, management expects the gross profit margin to remain around 30%, supported by a more favourable product mix that includes high margin launches like commercial units and semi-Ds

Analyst:
Thiam Chiann Wen
cwthiam@ta.com.my

$GLOMAC / 5020 (GLOMAC BERHAD)

$GLOMAC / 5020 (GLOMAC BERHAD)
Research by MIDF
NEUTRAL – TP RM0.39

" Earnings Driven by Sale of Completed Properties”

• 1QFY25 earnings deemed within expectations
• Earnings driven by sale of completed properties
• Weak new sales of RM20m in 1QFY25
• Earnings estimates maintained
• Maintain NEUTRAL with a revised TP of RM0.39

Analyst:
Jessica Low Jze Tieng
jessica.low@midf.com.my

$GLOMAC / 5020 (GLOMAC BERHAD)
Research by TA
Buy – TP RM0.62

" Results Boosted by Favourable Product Mix”

Glomac’s 1QFY25 core net profit of RM7.3mn exceeded expectations, accounting for 41% of our full-year forecast and 39% of the consensus estimates. This outperformance was primarily driven by higher-thananticipated development margins.

Analyst:
Thiam Chiann Wen
cwthiam@ta.com.my

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SHAPADU CAPITAL SDN. BHD.

PETALING JAYA: MIDF Research foresees earnings outlook for Glomac Bhd to be tepid as it is expected to be dragged slightly by weaker margins.

$GLOMAC / 5020 (GLOMAC BERHAD)
Research by MIDF
Neutral – TP RM0.43

“Tepid Outlook"

Maintain NEUTRAL with an unchanged TP of RM0.43. Post meeting, we make no changes to our earnings forecast for FY25F/26F/27F. We maintain our TP for Glomac at RM0.43, based on 80% discount to RNAV. Earnings outlook for Glomac is expected to be dragged slightly by the weaker margin. Nevertheless, new sales prospect for Glomac in FY25 is expected to be stable and better on the back of planned launch with GDV of RM425m for FY25. New sales momentum should continue to sustain by launch of its landed properties in Puchong, Suajana Utama and Saujana KLIA. Hence, we maintain our NEUTRAL call on Glomac.

Analyst:
Jessica Low Jze Tieng
jessica.low@midf.com.my

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SHAPADU CAPITAL SDN. BHD.

PETALING JAYA: Analysts have mixed views on property developer Glomac Bhd, as its performance for financial year 2024 (FY24) came in below expectations.

$GLOMAC / 5020 (GLOMAC BERHAD)
Research by MIDF
Neutral – TP of MYR 0.43

“Ended FY24 on A Weaker Note”

FY24 earnings below expectations. Glomac Berhad (Glomac) FY24 core net income of RM6.6m came below expectations, making up 43% and 47% of our consensus forecast. Note that we have excluded the fair value gain of RM17m for Glo Damansara Mall in our core net income calculations. The negative deviation was due to the weaker than expected progress billing in 4QFY24. Glomac proposed a dividend of 1.25sen per share for FY24 which translates into a dividend yield of 2.8%

Analyst(s):
Jessica Low Jze Tieng
jessica.low@midf.com.my

$GLOMAC / 5020 (GLOMAC BERHAD)
Research by TA
Buy – TP of MYR 0.63

“Better Days Ahead”

Excluding the fair value gain of RM17mn for the GLO Damansara retail mall, Glomac’s FY24 core net profit of RM6.6mn fell short of expectations, representing only 51% and 47% of ours and the consensus full-year forecasts, respectively. This underperformance was primarily attributed to lower-than-anticipated development margins and higherthan-expected finance costs. Note that our revenue forecast for the same period was nearly spot on.

Analyst(s):
Thiam Chiann Wen
cwthiam@ta.com.my

Glomac Bhd is cautiously optimistic about an improvement in the property market for its financial year ending April 2025 amid ongoing concerns about higher construction costs.

Quarterly rpt on consolidated results for the financial period ended 30/04/2024

OTHERSGLOMAC BERHAD ("GLOMAC" OR "THE COMPANY") - FINAL DIVIDEND FOR THE FINANCIAL YEAR ENDED 30 APRIL 2024

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SHAPADU CAPITAL SDN. BHD.

WINDING UP / RECEIVER & MANAGER / RESTRAINING ORDER / SPECIAL ADMINISTRATORGLOMAC BERHAD ("GLOMAC" OR "COMPANY")
- WINDING-UP PETITION SERVED ON GLOMAC RAWANG SDN. BHD. (GRSB OR RESPONDENT), A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY BY MARON ECON BUILD SDN. BHD. (PETITIONER OR CLAIMANT)

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SHAPADU CAPITAL SDN. BHD.

$GLOMAC / 5020 (GLOMAC BERHAD) is up today, gogogo!

$GLOMAC / 5020 (GLOMAC BERHAD)
Research by Ambank
Buy (Maintained) – FV of RM0.42

“Anticipation of stronger YoY sales in FY24”

We maintain BUY recommendation on Glomac with an unchanged fair value (FV) of RM0.42/share based on a discount of 45% to RNAV (Exhibit 5) and neutral ESG rating of 3-star (Exhibit 6). • The FV implies FY25F PE of 14x, slightly higher than the current average of smaller-cap property stocks. • We also maintain our earnings forecast following our recent meet up with Glomac’s management.

Analyst(s):
Khoo Zing Sheng
khoo.zing-sheng@ambankgroup.com

$GLOMAC / 5020 (GLOMAC BERHAD)
Research by TA
Buy – TP of MYR0.47

“Revised Sales Target to a Minimum of RM300mn”

Glomac's net profit for 9MFY24 plummeted by 52% YoY to RM8.4mn, missing expectations due to narrower property development margins. However, management anticipates earnings to strengthen in 4QFY24, driven by margin normalisation following the completion of low-margin development and accelerated recognition of progress billings for the nearly completed 121 Residences. Notably, 3QFY24 net profit surged nearly 8 times QoQ, with the EBIT margin improving from 9.7% in 2QFY24 to 12.5% post-completion of lowmargin development.

Analyst(s):
Thiam Chiann Wen
cwthiam@ta.com.my

KUALA LUMPUR: Glomac Bhd is cautiously optimistic about improvements in the property market.

© New Straits Times Press (M) Bhd

$GLOMAC / 5020 (GLOMAC BERHAD)

$GLOMAC / 5020 (GLOMAC BERHAD)
Research by TA
Under Review – TP of MYR0.46

“Disappointing Performance”

Glomac’s 9MFY24 net profit of RM8.4mn came in below expectations, accounting for 54% and 52% of our and consensus full-year forecasts, respectively. The underperformance was mainly due to lower-thanexpected development margins. Note that 9MFY24 revenue was within expectations and came in at 77% of our full-year forecasts.

Analyst(s):
Thiam Chiann Wen
cwthiam@ta.com.my

$GLOMAC / 5020 (GLOMAC BERHAD)
Research by MIDF
Buy – TP of MYR0.43

“Earnings Dragged by Lower Margin”

Glomac Berhad (Glomac) 9MFY24 core net income of RM4.3m came in slightly below consensus expectation but deemed within our expectation despite it makes up 60% of our full year forecast as we expect stronger earnings in 4Q as historically 4Q is a stronger quarter while progress billing is expected to pick up.

Analyst(s):
Jessica Low Jze Tieng
jessica.low@midf.com.my