Glomac to be supported by prospects of new sales

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

“We had a meeting with Glomac and came away feeling ‘neutral’ on its outlook in the near-term,” it said.

The research house has an unchanged target price of 43 sen for the property developer based on 80% discount to revised net asset value.

“Nevertheless, new sales prospect for Glomac in FY25 is expected to be stable and better on the back of planned launch with a gross development value (GDV) of RM425mil for FY25,” MIDF Research added.

It said new sales momentum should continue to sustain with the launch of its landed properties in Puchong, Suajana Utama and Saujana KLIA.

The research house said Glomac recorded encouraging property sales of RM218mil in 4Q24, which brought total new sales to RM360mil in FY24.

“Close to 70% of total new sales in FY24 were contributed by landed properties in Lakeside Residences and Suajana KLIA.

“Notably, property sales at Lakeside Residences were mainly driven by the launch of semi-Ds namely Keys,” it highlighted.

Phase one of Keys which comprising 98 units of Semi-Ds (3,200 sq ft) has a total estimated GDV of RM239mil with average selling price per unit of RM2.4mil.

Forty-two units were sold during the first launch while close to 40% of 56 units had been snapped up in the second phase.

On the other hand, double-storey terrace houses at Allamanda Suajana KLIA which were launched in January 2024, were 88% taken up mainly due to the affordable average selling price per unit of RM530,000.

Meanwhile, future development of landed properties in Lakeside Residences and Suajana KLIA should continue to support new sales as demand for landed house remains strong.

MIDF Research said response for Loop City Residences was tepid with a take up rate of 20%.

Loop City Residences is Glomac’s first high-rise project in Puchong.

The project comprises 980 units of small office, home office or Soho as well as serviced apartment with a total GDV of RM340mil. The units ranged from 450 sq ft to 750 sq ft with selling prices from RM300,000 to RM560,000.


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