KUALA LUMPUR: Glomac Bhd's net profit jumped 62.95 per cent to RM9.11 million in the second quarter (Q2) ended October 31, 2020 from RM5.59 million a year ago due to the resumption of construction activities post-lockdown.
Group revenue surged 70 per cent to RM104.6 million, translating to a 56 per cent increase in pre-tax profit to RM14.3 million in the quarter under review.
"The stronger performance was driven by resumption of construction activities post-MCO and consequently, higher progress billings from Glomac's ongoing projects such as Saujana Perdana at Bandar Saujana Utama, Plaza@Kelana Jaya, Saujana Rawang and 121 Residences," Glomac said.
For the six-month period, Glomac's net profit rose 32.76 per cent to RM11.88 million from RM9.05 million a year ago, as revenue climbed 33.61 per cent to RM151.49 million from RM113.38 million.
The group said its balance sheet remained healthy, providing ample liquidity to further drive its development activities.
"As at October 31 this year, our net gearing sustained at a low of 0.28 time, while cash and cash deposits totaled RM246.3 million, improved from RM176.5 million reported as at April 30, 2020. The group's net assets per share rose to RM1.44," it said.
Glomac said the new sales in the second half of the financial year were expected to pick up as the group rolled out the bulk of RM403 million planned launches, concentrating on new phases of affordable landed residential phases in its thriving townships.
Substantial ongoing phases of Glomac's landed residential products are almost fully sold.
"The property market remains challenging amid the ongoing stages of Movement Control Orders in the country. Adapting to the current environment, Glomac has initiated aggressive digital marketing campaigns to complement its conventional sales strategies and to effectively boost sales," it said.
The group said its near-term earnings visibility was supported by healthy unbilled sales of RM649 million.
"This will be replenished further with improving sales from Glomac's ongoing projects as well as upcoming new launches.
"Going forward, the group's development activities will be fortified by a strong portfolio of prime development landbank with potential estimated gross development value of RM8 billion," it added.