More ... Glomac Bhd

There was a negetive article about Glomac, back in May 2007. Some analysts raised their concerns as the group's flagship project - Aman Suria Damansara is nearing completion, no clear project substantial enough to fill the earnings of Aman Suria Damansara for FY2007 to FY2008. It is further reported that newer commercial projects, when completed, may be caught at the wrong end of the office property cycle. An analyst adds: "With the property sector boom in the early cycle and the government launching more incentives to boost the sector, it may be too early to call a 'sell' on Glomac.

For the Financial Year Ended 2007, Glomac recorded a total of RM293mil revenue, with net profit of RM32mil. The revenue is slightly higher as compared to preceding year [RM285mil]. However, net profit is slight lower [RM32mil vs RM37mil]. Glomac has declared a total of 9 sen dividend for both financial years. Net assets per share has increased moderately from RM1.81 to RM1.90.


Meanwhile, Glomac has moved beyond Malaysia. The group has identified some 30 acres in Pune (India), a second-tier city with a population of about six million, to build its first residential projects overseas. This planned project will concentrate on high-end residential homes targeted at the locals.

To recap, Glomac already has investments in Australia and Thailand. Last year, it purchased an office building for A$30.5mil in Melbourne and bought into a Thai company specialising in constructing warehouses. Glomac inked the partnership earlier this year and WHA Glomac Aliance Co Ltd was formed.

WHA Glomac Alliance officially handed a purpose-built pharmaceutical warehouse for Dielthlem Ltd on July 9. It is located on 76,000 sq m of freehold land in Bangkok's Samutprakam province. Two warehouses haven been buily offering some 550,00 sq ft of space. It will be leased to Dielthlam for 15 years with rental to increase by 10% every three years. This has created a good recurring income for the group

At home, Glomac is being kept busy with several commercial projects that are expected to take of next year. Plans have been submitted [Glomac Tower] and the group is confident that it will be start working early next year even with the official freeze on construction of office building in the city. Any developer who wants to put up an office building in the city has to ensure its secures a substantial percentage of tenants who require the space. Glomac's executive vice-chairman, Datuk Richard Fong confirms that Glomac has secured some 'big tenants'. Glomac is looking at some banks from Middle East taking up the space. This is by virtue of its partnership with Al Batha.

Lastly, Glomac would prefer to look at India for the time being, rather than IDR or Penang.


Closed at RM1.69 last Friday, should it be a cheap entry for a small property company which has exposure/venture into overseas - Thailand, Australia and India?