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PETALING JAYA: Mid-sized developer Glomac Bhd is expected to register higher new sales in financial year 2023 (FY2023) against new sales of RM160 million achieved in FY2022, said MIDF Research.
The research house said the new sales in the second half of FY2023 are expected to be supported by new project launches and sale of ongoing projects namely Plaza @ Kelana Jaya and 121 Residences.
“Besides, the potential monetisation of inventory may also help support new sales growth in FY2023,” it said in a note today.
Glomac planned launches with total gross development value (GDV) of RM510 million for second half (H2) FY2023, with key launches including phase one of GreenTec in Puchong with GDV of RM340 million.
GreenTec is a new integrated residential development with total GDV of RM1.57 billion, where phase one is expected to be launched in the fourth quarter (Q4) of FY2023 pending approval from the authorities.
Glomac targets to launch 980 units of small office home office (Soho) and serviced apartments with average size ranging from 450 square feet (sf) to 750sf – with the average price per unit at an affordable RM350,000.
Meanwhile, other launches for the second half of FY2023 include double-storey terrace at Saujana KLIA with GDV of RM100 million and affordable high-rise apartments at Lakeside Residence with GDV of RM70 million, it said.
Previously, the company had registered new sales of RM106 million in H1 FY2023, contributed mainly by property launches at Bandar Saujana Utama, 121 Residences, Lakeside Residences and Plaza @ Kelana Jaya.
“Post-update with the company, we remain upbeat on new sales prospects for Glomac in the near term driven by its planned launches in H2 FY2023. We maintain our ‘buy’ call on Glomac with target price (TP) at 48 sen.
“We remain positive on Glomac due to its positive new sales outlook underpinned by its strategy of selling properties within an affordable price range,” said MIDF Research.
At 10.08 am today, Glomac shares was flat at 30.5 sen.