PETALING JAYA: Despite a strong third-quarter performance, Glomac Bhd
’s earnings for the full financial year ending April 30, 2026 (FY26) are likely to miss targets, according to TA Research.
In its results for the third quarter of FY26 (3Q26), the group posted a revenue of RM64.6mil, a 92% rise from 3Q25.
Net profit for 3Q26 stood at RM5.18mil, up from RM1.95mil in 3Q25.
TA Research said the quarterly results reflected a pick-up in Glomac’s earnings momentum, with net profit rising 24% quarter-on-quarter (q-o-q) compared to RM4.2mil in 2Q26.
It added that this indicated continued recovery from its 1Q26 loss of RM1.7mil, supported by improving project billings.
However, the research house noted that for the first nine months of FY26 (9M26), the group’s revenue contracted by 10% year-on-year (y-o-y) to RM146.4mil, while core net profit declined by 42% y-o-y.
It said this was due to lower contributions from certain projects in their early build stages, as well as reduced other operating income.
“Excluding a RM0.3mil fair value gain on investment properties, Glomac posted a core net profit of RM7.7mil in 9M26, which came in below expectations, meeting just 47% of our full-year forecast,” it said in a note.
“The negative variance was largely due to weaker-than-expected property sales and progress billings.”
While Glomac recorded new property sales of RM104mil in 3Q26, which marks a q-o-q increase of 271% and 41% y-o-y, this was largely driven by a RM97mil land sale in Puchong to Sunway, the research house said.
As a consequence, the group’s 9M26 new sales rose by 5% y-o-y to RM170mil.
TA Research said that excluding the sale to Sunway, 3Q26 property sales would have been subdued at RM7mil, bringing 9M26 sales to RM73mil, representing a y-o-y decline of 55%.
According to the research house, Glomac expects improved earnings in 4Q26, backed by normalising progress billings at Lakeside Residences and Bandar Saujana Utama, as well as contributions from new launches.
TA Research said a better sales mix towards higher-margin landed and commercial products should serve to keep gross margins above 30%.
“That said, we remain cautious on the extent of the recovery, as 9M26 core net profit of RM7.7mil suggests that the earnings momentum may not be sufficiently strong to meet our full-year estimates.”
Management has guided for FY26 sales to be broadly in line with FY25’s RM332mil, supported by the RM170mil achieved year-to-date and a launch pipeline of RM256mil gross development value in its fourth quarter.
“However, we view this target as optimistic, as all RM256mil launches are scheduled for April (the final month of the financial year), and are unlikely to contribute meaningfully within FY26 due to the lead time required for sales conversion and bank loan approvals,” TA Research noted.
As a consequence, the research house has reduced its FY26 sales assumption from RM330mil to RM250mil, and revised down its FY26, FY27, and FY28 earnings forecasts by 14%, 7%, and 6%, respectively.
TA Research has maintained its “sell” recommendation on the stock, reflecting weak earnings visibility and limited re-rating catalysts.
Its target price remains unchanged at 33 sen, based on 0.21 times 2027 price-to-book value or P/BV.
