PROPERTY NEWS: Glomac expects increased property sales in the fiscal year 2023

Key takeaway: Glomac Bhd is expected to record more new sales in the fiscal year 2023 (FY2023) as a result of the launch of new projects and the sale of existing ones such as Plaza @ Kelana Jaya and 121 Residences.

In FY202, new sales have totaled RM160 million.

Glomac recorded new sales of RM106 million in the first half of the fiscal year 2023, primarily as a result of the launch of properties at Bandar Saujana Utama, 121 Residences, Lakeside Residences, and Plaza @ Kelana Jaya.

According to a note issued today by MIDF Research, the prospective monetisation of inventory may also drive new sales growth in FY2023.

Glomac intends to launch new products with a total gross development value (GDV) of RM510 million in the second half of the fiscal year 2023.

GreenTec Phase One in Puchong, with a GDV of RM340 million, is one of the major launches scheduled for the fourth quarter (Q4) of the fiscal year 2023, pending approval from the authority.

GreenTec is a RM1.57 billion gross development value integrated residential complex.

Glomac intends to introduce 980 units of SOHOs and serviced flats with an average size of 450 to 750 square feet and an average price of RM350,000, according to MIDF.

Other launches in the second half of FY2023 include RM70 million affordable high-rise apartments at Lakeside Residence and RM100 million double-storey terrace houses at Saujana KLIA.

"Post-update with the company, we remain upbeat on new sales prospects for Glomac in the near term driven by its planned launches in the second half of FY2023. We maintain our "buy" call on Glomac with a target price (TP) of RM0.48.

"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 the research firm.

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