At first glance, Glomac’s FY12 results appear to be ahead of expectations, but excluding the gain from disposal of an associate, its core net profit was only largely within expectations, accounting for 101% and 97.5% of our and consensus FY12 forecasts respectively. Revenue went up 9.7% y-o-y on higher progress billings from its ongoing projects, while core net profit jumped 25.7% y-o-y, underpinned by improved margins. We maintain our forecasts and BUY call at an unchanged FV of RM1.04, based on 0.9x CY12 P/NTA, which is about 1.0σ above the stock’s 10-year historical mean.
Largely within forecasts. Glomac reported a net profit of RM85.8m for FY12, which
included a net gain arising from disposal of its 49% stake in Thailand-based WHA
Glomac Alliance Company Limited. Excluding this disposal gain, Glomac’s core net profit
stood at RM79.2m, accounting for around 101% and 97.5% of our and consensus’ FY12
net profit forecasts respectively. Despite an 8.1% y-o-y revenue contraction in 9MFY12,
the company’s full-year FY12 revenue still went up by 9.7% y-o-y, mainly attributed to
aggressive progress billings from its ongoing projects in 4QFY12, as well as the final
revenue recognition from the completed Glomac Tower project. In tandem with the
revenue growth, its core net profit for FY12 was higher by 25.7%, fuelled by better
margins, lower MI charges and a lower effective tax rate.
Healthy growth. Glomac recorded total sales of more than RM663m for FY12, which
was above its target of RM500m. This was driven by the strong response to its township
projects in Bandar Saujana Utama and Saujana Rawang, as well as contributions from
Glomac Damansara Residences and Glomac Centro. The company’s unbilled sales were
healthy, rising to RM733m as at end-4QFY12. The recent launch of the much anticipated
39-storey Reflection Residences in March 2012 was well-received. The freehold serviced
apartment project in Mutiara Damansara with a total GDV of RM270m recorded a takeup rate of 90%. Glomac has a strong pipeline of strategic projects with GDV totaling
more than RM7bn to be launched over the next few years. Given its healthy balance
sheet, we believe that the company would have the financial muscle to acquire more
landbank as well as participate in the privatization of government land.
Maintain BUY. We maintain our forecasts and BUY recommendation at an unchanged FV of RM1.04, based on 0.9x CY12 P/NTA, which is about 1.0σ above the stock’s 10-year historical mean.
FYE April (RMm) FY09 FY10 FY11 FY12 FY13f
|
Total Revenue 345.3 318.1
601.5 655.6 733.8
|
Net Profit 32.0 40.7 63.0 85.8
93.1
|
% chg y-o-y -9.0 27.4 54.6 36.1 8.5
|
Consensus - - - 81.2 97.5
|
EPS (sen) 10.8 6.9 10.6 14.1 15.7
|
Gross DPS (sen) 7.0 4.3 4.8 5.5 5.5
|
Gross Div. Yield (%) 8.0 4.9 5.5 6.3 6.3
|
PER (x) 8.1 12.7 8.2 6.2 5.6
|
BV/Share 1.74 0.93 1.01 1.04 1.13
|
P/BV (x) 0.5 0.9 0.9 0.8 0.8
|
ROE (%) 6.3 7.6 10.9 13.9 14.2
|
ROA (%) 2.7 3.6 5.0 6.3 6.5
|