TA Research said said the management continues to highlight plans to ramp up annual launches to RM700 to RM800mil from FY27 onwards.
PETALING JAYA: Weaker sales and slower property launches are anticipated to drag property developer Glomac Bhd
’s earnings for financial year 2026 (FY26), FY27 and FY28.
TA Research said it is revising down its sales assumptions by 13%, 8%, and 10% to RM330mil, RM350mil, and RM380mil for FY26, FY27, and FY28, respectively, reflecting slower-than-expected launches and weaker-than-anticipated sales momentum.
Consequently, the research house is cutting its earnings forecasts by 24%, 28% and 21% for FY26, FY27 and FY28, respectively.
Glomac posted a core net loss of RM1.7mil in the first quarter of FY26 (1Q26), versus a core net profit of RM7.3mil in 1Q25 and RM2.4mil in 4Q25.
The weaker results were due to lower construction activities, with ongoing phases still at the early stage of recognition.
“Management highlighted that measures have been implemented to accelerate progress, including the award of new contracts to kick-start projects, which should support stronger billings in the coming quarters.
“Unbilled sales of RM566mil (2.7 times FY25 property development revenue) provide earnings visibility for the next 12 to 18 months, but we expect a more meaningful recovery only from 3Q26 onwards,” the research house said after a recent meeting with Glomac’s management.
Among other things, it said the management continues to highlight plans to ramp up annual launches to RM700 to RM800mil from FY27 onwards, and is actively exploring land acquisitions in the Klang Valley and Johor.
“While the group’s balance sheet remains healthy with a net cash position of RM8mil versus the sector average net gearing of 0.4 times, we note that progress on landbanking has been limited so far.
“Near-term focus will likely remain on executing existing projects,” TA Research noted, adding that it has downgraded Glomac to a “hold” from a “buy” call, with a lower target price of 33 sen per share from 40 sen previously.
