TA Research stated that Glomac’s long-term prospects remain solid.
PETALING JAYA: Analysts have mixed views on property developer Glomac Bhd
despite its earnings outlook forecast to be stable.
MIDF Research decided to maintain a “neutral” call on the group with a revised target price (TP) of 39 sen per share.
This was supported by the fact that while the earnings outlook for Glomac is expected to be stable going forward, MIDF Research said the recommendation was made due to its limited upside.
MIDF Research was noted to have also not made any changes to its earnings forecast for the group for the financial year 2025 (FY25), FY26 and FY27.
On the other hand, TA Research has a brighter perspective on the group as it maintained a “buy” call on Glomac with an unchanged TP of 62 sen per share.
The brokerage noted that the group anticipates a boost in new sales, fuelled by upcoming FY25 launches worth RM459mil and the RM340mil Loop City Residences.
Additionally, TA Research stated that Glomac’s long-term prospects remain solid, underpinned by a robust balance sheet and a substantial pipeline of development projects with a potential gross development value of RM7bil.
Glomac had released its financial results for the first quarter of FY25 ended July 31, 2024 and posted a higher net profit of RM7.28mil with a basic earnings per share of 0.95 sen per share.
Its revenue also saw a slight increase by 21.92% year-on-year to RM73.29mil from RM60.11mil in the same quarter of the previous year. The research house said Glomac’s return to the black was driven by stronger revenue and improved profit margins. MIDF Research added that its sale of completed property had supported growth.
