KUALA LUMPUR: Property developer Glomac Bhd is optimistic about surpassing the RM160 million in revenue achieved in its financial year ended April 30, 2022 (FY22) in its upcoming FY23.
According to managing director and chief executive officer Datuk Seri FD Iskandar, the company has generated around RM125 million in sales so far this financial year.
Iskandar said Glomac aims to raise its development activities with RM469 million in new launches in the current financial year.
The focus will be on the market demand as the company already has a full spectrum of developments.
"Last (financial) year, we lost about eight months because of the emergency ordinance and the pandemic. We were still facing the pandemic. So this year, we should be hoping to do much better than last year.
"With the RM469 million in new launches planned for this year, most of them will take place in the third and fourth quarter because we want to see first whether the labour situation has improved.
"We also want to see whether the material prices have stabilised," he told a media briefing today after the company's annual general meeting (AGM).
Iskandar said Glomac also expects to see margin compression for next year due to rising raw material prices, labour shortage, and global economic crisis.
Iskandar said the company had requested the government to re-introduce the home ownership campaign (HOC) to encourage the domestic real estate market.
"We humbly ask the government to re-introduce HOC because, at the moment, we are still in an uncertain economic situation.
"I believe most real estate developers want HOC to be introduced. However, we also hope the government will ease the process of hiring foreign labour," he said.
Iskandar said Glomac intends to drive earnings through steady construction progress at its ongoing projects and successfully executing its upcoming new launches.
"Longer-term prospects for Glomac remain intact, underpinned by a healthy balance sheet and a strong pipeline of future development projects with a potential estimated gross development value of RM8 billion, largely strategically located within the Klang Valley," he said.
Glomac shareholders have approved the final single-tier dividend of 1.5 sen per ordinary share for FY22, compared to 1.0 sen per ordinary share paid previously, translating to a current dividend yield of approximately 5.4 per cent.
Iskandar said Glomac had enjoyed robust sales within its township developments, where completed and ongoing phases have been mostly sold.
"This underscores Glomac's ability to tailor residential products to the strong market demand in the affordable and mid-market segment.
"The company will strive to innovate its product offerings further to appeal to the ever-changing demands of home buyers and sustain its sales momentum," he added.
