Glomac Berhad is entering the green energy industry, where it will explore potential in solar and green energy with Tenaga Nasional Bhd (TNB).
Its 51 per cent-owned subsidiary, Glomac Technology Sdn Bhd, signed a Memorandum of Understanding (MOU) with TNB on April 17.
Glomac told the stock exchange that the MOU would remain effective for 24 months from the date of signing.
The developer said that the MOU is not expected to have any material or immediate effect on the earnings, net assets, and gearing of the Glomac group for the financial year ending April 30, 2023 (FY2023).
Last month Glomac said in a filing with Bursa Malaysia that it expects FY2023 to remain challenging given the concerns over inflation, labour shortage, rising interest rate, and material costs that will affect the property sector.
Glomac reported group revenue of RM209.9 million for the nine months of its fiscal year ending April 30, 2022 (9M FY2023), a 13 per cent increase as compared to RM185.9 million achieved in the corresponding period of FY2022.
The company's 9M FY2023 pre-tax profit came in lower at RM29.6 million against RM32.5 million in the previous corresponding period, mainly impacted by higher operating costs.
Despite the challenging outlook anticipated by Glomac, TA Research noted of its strong balance sheets.
TA Research in its note last month said Glomac's balance sheet is at a healthy position, with its latest net gearing improving further to 0.20 times from 0.21 times in the previous consecutive quarter.
"Its management expects FY2023 sales to exceed FY2022's RM160 billion due to increased pipeline launches totalling RM510 million compared to RM106 million launched in FY2022. The majority of new launches are scheduled for the second half of FY2023," it said.