Glomac Berhad
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Glomac Berhad
Financial Snapshot Operating Performance
Fast Facts Headquarters Address
Level 15, Menara Glomac, Kuala Lumpur, 60000,Malaysia
Telephone
+ 60 3 77239000
Fax
+ 60 3 77297000
Website
www.glomac.com.my
Ticker Symbol, Stock Exchange
GLOMAC, Bursa Malaysia
Number of Employees
321
Fiscal Year End
April
Revenue (in US$ million)
214
The company reported revenue of US$214 million during the fiscal year 2014 (2014). The company's revenue grew at a CAGR of 21.56% during 2010 – 2014, with an annual decline of 0.63% over 2013. In 2014, the company recorded an operating margin of 23.24%, as against 22.55% in 2013. Revenue and Margins
SWOT Analysis Strengths
Weaknesses
Return on Equity
Diversified business operations
Limited financial leverage
The company recorded a return on equity (ROE) of 12.22% for 2014, as compared to its peers, Amcorp Properties Berhad (Ticker: AMPROP), Sunway REIT Management Sdn Bhd (Ticker: SUNREIT) and S P Setia Berhad (Ticker: SPSETIA), which recorded ROEs of 18.27%, 11.15% and 6.26% respectively. The company reported an operating margin of 23.24% in 2014.
Strong liquidity position Strong operating performance
Opportunities
Threats
Positive outlook for Malaysian construction industry
Shortage of skilled labor
Strategic growth initiatives
Volatile input prices
Return on Equity
Liquidity Position The company reported a current ratio of 2.14 in 2014, as compared to its peers, Amcorp Properties Berhad, Sunway REIT Management Sdn Bhd and S P Setia Berhad, which recorded current ratios of 3.95, 0.10 and 2.30 respectively. As of April 2014, the company recorded cash and short-term investments of worth US$105 million, against US$69 million current debt. The company reported a debt to equity ratio of 0.60 in 2014 as compared to its peers, Amcorp Properties Berhad, Sunway REIT Management Sdn Bhd and S P Setia Berhad, which recorded debt to equity ratios of 0.39, 0.47 and 0.67 respectively.
Glomac Berhad
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1
Glomac Berhad Berhad - Business Analysi Analysis s ................... .................. ..................... ................... .................... . 5 1.1
Glomac Berhad - Company Overview Overview .............................................................................................................. 5
1.2
Glomac Berhad - Business Description ............................................................................................................ 6
1.3
Glomac Berhad - Major Products and Services ................................................................................................ 7
2
Glomac Berhad Berhad - Analysis of Key Performance Indicators Indicators .................... .................... .................... .... 8 2.1
Glomac Berhad - Five Year Year Snapshot: Overview Overview of Financial and Operational Operational Performance Indicators ............ 8
2.2
Glomac Berhad - Key Financial Performance Indicators ................................................................................. 11
2.2.1
Glomac Berhad - Revenue and Operating Profit ........................................................................................ 11
2.2.2
Glomac Berhad - Asset and Liabilities........................................................................................................ 12
2.2.3
Glomac Berhad - Net Debt vs. Gearing Ratio ............................................................................................. 1 3
2.2.4
Glomac Berhad - Operational Efficiency .................................................................................................... 14
2.2.5
Glomac Berhad - S olvency olvency ........................................................................................................................ 15
2.2.6
Glomac Berhad - Valuation ............................................................................................................... ......... 16
2.3
Glomac Berhad - Competitive Benchmarking ................................................................................................. 1 7
2.3.1
Glomac Berhad - Market Capitalization ...................................................................................................... 1 8
2.3.2
Glomac Berhad - Efficiency ....................................................................................................................... 19
2.3.3
Glomac Berhad - Turnover Turnover – Inventory and Asset ...................................................................................... 20
2.3.4
Glomac Berhad - Liquidity ......................................................................................................................... 21
3
Glomac Berhad Berhad - Recent Developments Developments.................... ................... .................... .................... ............ 22
4
Glomac Berhad Berhad - SWOT Analysis Analysis .................................... .................... ................... .................... ...... 23 23 4.1
Glomac Berhad - SWOT Analysis - Overview................................................................................................. 23
4.2
Glomac Berhad - Strengths............................................................................................................................ 23
4.3
Glomac Berhad - Weaknesses....................................................................................................................... 23
4.4
Glomac Berhad - Opportunities ............................................................................................................. ......... 24
4.5
Glomac Berhad - Threats........................................................................................................................... .... 24
5
Glomac Berhad Berhad - Company Statement................................... Statement................................... ..................... ................... ................... 25
6
Glomac Berhad Berhad - History.................. ................... .................... ................... .................... ................... 27
7
Glomac Berhad Berhad - Key Employ Employees ees .................... .................... .................... ................... ................... ... 29
8
Glomac Berhad Berhad - Key Employee Biographies................................ Biographies................................ ................... ................... ............. 30
9
Glomac Berhad Berhad - Locations Locations and Subsidiaries Subsidiaries ................................. .................... .................... ......... 31 9.1
Glomac Berhad - Head Office Office ........................................................................................................................ 31
9.2
Glomac Berhad - Other L ocations and Subsidiaries ....................................................................................... 31
10
Appendix ........................................................................................................................................... 33
10.1
Methodology........................................................................................................................ .......................... 33
10.2
Ratio Definitions Definitions ................................................................................................ ............................................ 33
10.3
Disclaimer ..................................................................................................................................................... 37
Glomac Berhad
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1
Glomac Berhad Berhad - Business Analysi Analysis s ................... .................. ..................... ................... .................... . 5 1.1
Glomac Berhad - Company Overview Overview .............................................................................................................. 5
1.2
Glomac Berhad - Business Description ............................................................................................................ 6
1.3
Glomac Berhad - Major Products and Services ................................................................................................ 7
2
Glomac Berhad Berhad - Analysis of Key Performance Indicators Indicators .................... .................... .................... .... 8 2.1
Glomac Berhad - Five Year Year Snapshot: Overview Overview of Financial and Operational Operational Performance Indicators ............ 8
2.2
Glomac Berhad - Key Financial Performance Indicators ................................................................................. 11
2.2.1
Glomac Berhad - Revenue and Operating Profit ........................................................................................ 11
2.2.2
Glomac Berhad - Asset and Liabilities........................................................................................................ 12
2.2.3
Glomac Berhad - Net Debt vs. Gearing Ratio ............................................................................................. 1 3
2.2.4
Glomac Berhad - Operational Efficiency .................................................................................................... 14
2.2.5
Glomac Berhad - S olvency olvency ........................................................................................................................ 15
2.2.6
Glomac Berhad - Valuation ............................................................................................................... ......... 16
2.3
Glomac Berhad - Competitive Benchmarking ................................................................................................. 1 7
2.3.1
Glomac Berhad - Market Capitalization ...................................................................................................... 1 8
2.3.2
Glomac Berhad - Efficiency ....................................................................................................................... 19
2.3.3
Glomac Berhad - Turnover Turnover – Inventory and Asset ...................................................................................... 20
2.3.4
Glomac Berhad - Liquidity ......................................................................................................................... 21
3
Glomac Berhad Berhad - Recent Developments Developments.................... ................... .................... .................... ............ 22
4
Glomac Berhad Berhad - SWOT Analysis Analysis .................................... .................... ................... .................... ...... 23 23 4.1
Glomac Berhad - SWOT Analysis - Overview................................................................................................. 23
4.2
Glomac Berhad - Strengths............................................................................................................................ 23
4.3
Glomac Berhad - Weaknesses....................................................................................................................... 23
4.4
Glomac Berhad - Opportunities ............................................................................................................. ......... 24
4.5
Glomac Berhad - Threats........................................................................................................................... .... 24
5
Glomac Berhad Berhad - Company Statement................................... Statement................................... ..................... ................... ................... 25
6
Glomac Berhad Berhad - History.................. ................... .................... ................... .................... ................... 27
7
Glomac Berhad Berhad - Key Employ Employees ees .................... .................... .................... ................... ................... ... 29
8
Glomac Berhad Berhad - Key Employee Biographies................................ Biographies................................ ................... ................... ............. 30
9
Glomac Berhad Berhad - Locations Locations and Subsidiaries Subsidiaries ................................. .................... .................... ......... 31 9.1
Glomac Berhad - Head Office Office ........................................................................................................................ 31
9.2
Glomac Berhad - Other L ocations and Subsidiaries ....................................................................................... 31
10
Appendix ........................................................................................................................................... 33
10.1
Methodology........................................................................................................................ .......................... 33
10.2
Ratio Definitions Definitions ................................................................................................ ............................................ 33
10.3
Disclaimer ..................................................................................................................................................... 37
Glomac Berhad
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List of Tables
Table 1: Glomac Berhad - Major Products Products and Services .................................................................................................. 7 Table 2: Glomac Berhad - Key Ratios Ratios - Annual ................................................................................................................ 8 Table 3: Glomac Berhad - Key Ratios Ratios - Interim .............................................................................................................. 10 Table 4: Glomac Berhad - Key Capital Market Market Indicators ............................................................................................... 10 Table 5: Glomac Berhad - History.............................................................................................................................. .... 27 Table 6: Glomac Berhad - Key Employees..................................................................................................................... 29 Table 7: Glomac Berhad - Key Employee Employee Biographies ................................................................................................... 30 Table 8: Glomac Berhad - Subsidiaries Subsidiaries ................................................................................................................. ......... 31 Table 9: Glomac Berhad - Locations.......................................................................................................................... .... 32
Glomac Berhad
__________________________________________________________________________________________ List of Figures
Figure 1: Glomac Berhad - Revenue and Operating Profit.............................................................................................. 11 Figure 2: Glomac Berhad - Financial Position ....................................................................................................... ......... 12 Figure 3: Glomac Berhad - Net Debt vs. Gearing Ratio .................................................................................................. 13 Figure 4: Glomac Berhad - Operational Efficiency .......................................................................................................... 14 Figure 5: Glomac Berhad - Solvency ......................................................................................................................... .... 15 Figure 6: Glomac Berhad - Valuation ......................................................................................................................... .... 16 Figure 7: Glomac Berhad - Market Capitalization ........................................................................................................... 18 Figure 8: Glomac Berhad - Efficiency......................................................................................................................... .... 19 Figure 9: Glomac Berhad - Turnover – Inventory and Asset ........................................................................................... 20 Figure 10: Glomac Berhad - Liquidity......................................................................................................................... .... 21
Glomac Berhad
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1 Glomac Berhad - Business Analysis 1.1
Glomac Berhad - Company Overview
Glomac Berhad (Glomac) is a real estate development and management company, based in Malaysia. The company develops and sells residential and commercial properties, town ships and mixed development properties. It also provides property investment and building management services. Furthermore, Glomac through its subsidiary Glomac Bina Sdn Bhd provides construction contracting services for residential and commercial development and turnkey projects. In addition, the company through its subsidiary, Prominent Excel Sdn Bhd provides professional and complete car park management and consultancy services from pre-operations to operations. It also m anages a range of car park s ystems in Malaysia. The company has presence in Au stralia and Thailand, and is headquartered in Petaling Jaya, Malaysia.
Glomac Berhad
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1.2
Glomac Berhad - Business Description
Glomac is a property development and investment company in Malaysia. The company also provides property management, construction and car parking services. It undertakes residential and commercial projects, township and mixed development projects. The company operates in in Australia, Malaysia and Thailand. The company classifies its operations into four reportable d ivisions; property development, construction, property investment and others. The company’s property development division develops and sells residential and commercial properties such as bungalows, serviced apartments, semi detached houses, shops, boutiques, condominiums and terraced houses. It also develops township projects and mixed development projects. The company develops projects primarily in Kuala Lumpur, Johor and Selangor regions. It has completed development of over 15,000 residential and commercial units. The company’s project portfolio includes reflection residences, lakeside residences, Glomac Cyberjaya 2, Saujana Utama, Sri Saujana, Glomac Damansara and Glomac Centro. In FY2013, the property development division accounted for 83.8% of the company’s total rev enues. The company’s construction division operates through the subsidiary, Glomac Bina Sdn Bhd (Glomac Bina). It provides construction contracting services in Malaysia and primarily undertakes residential and commercial development projects and turnkey projects. Glomac Bina project portfolio includes Bandar Sri P ermaisuri, Mahkota Cheras, Taman Jasa Utama, Saujana Utama, OUG Square, Plaza Kelana Jaya and primary and secondary school in Saujana Utama. In FY2013, the construction division accounted for 12.1 % of the company’s total revenues.
The property investment division of the company involves in in vestment of land and buildings for investment potential and rental income in future. This division has invested in various properties including Dataran Prima, Kelana Centre Point, Taman Jasa Utama, Worldwide Business Park in Malaysia and an office building in Australia. In FY2013, the property investment division accounted for 1.4% of the company’s total revenues. The Other division of the company provides property and building management services to residential and commercial projects. The company provided management services to various projects such as Cita Damansara Condominium, Glomac Business Centre, Prima 16 Condominium Second Chapter, Seri Bangi and Galeria Hartamas. In addition, the company through its subsidiary, Prominent Excel Sdn Bhd provides professional and complete car park management and consultancy services from pre-operations to operations. Its services include system engineering, audit control, car park design, customer service, maintenance and sales and marketing services. It also operates five car park systems in Malaysia including Auto Pay Car Park System, Long-range pass-card reading system and Coin Payment Car Park System. The company also provides warehousing and logistic services in Thailand through its subsidiary Glomac Thailand Sdn Bhd. In FY2013, the Other division accounted for 2.7% of the company’s total revenues.
Glomac Berhad
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1.3
Glomac Berhad - Major Products and Services
Glomac is a real estate de velopment company in Malaysia. The key services offered by the company include: Table 1: Glomac Berhad - Major Products and Services Services:
Property development Property investment and management Construction Car park management Source: World Market Intelligence
Glomac Berhad
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2 Glomac Berhad - Analysis of Key Performance Indicators 2.1
Glomac Berhad - Five Year Snapshot: Overview of Financial and Operational Performance Indicators
The company reported revenue of US$214 million during the fiscal year 2014 (2014). The company's revenue grew at a CAGR of 21.56% during 2010 –2014, with an annual decline of 0.63% over 2013. During 2014, operating margin of the company was 23.24% in comparison with operating margin of 22.55% in 2013. In 2014, the company recorded a net profit margin of 16.02% compared to a net profit margin of 15.02% in 2013. Table 2: Glomac Berhad - Key Ratios - Annual Key Ratios
Unit/Currency
2014
2013
2011
2012
2010
Equity Ratios
EPS (Earnings per Share)
MYR
0.15
0.15
0.14
0.10
0.07
Dividend per Share
MYR
0.05
0.05
0.04
0.04
0.03
Absolute
3.05
3.04
3.35
2.77
2.21
MYR
1.25
1.12
1.12
1.02
0.94
Gross Margin
%
32.16
30.71
34.18
26.94
29.56
Operating Margin
%
23.24
22.55
24.69
21.67
23.64
Net Profit Margin
%
16.02
15.02
13.05
10.54
12.90
Profit Markup
%
47.41
44.33
51.94
36.88
41.95
PBT Margin (Profit Before Tax)
%
23.24
22.55
24.69
21.67
23.64
Return on Equity
%
12.22
12.89
13.37
10.50
7.39
Return on Capital Employed
%
12.57
12.20
15.64
15.28
9.29
Return on Assets
%
6.33
6.41
6.29
4.65
3.54
Return on Fixed Assets
%
21.74
23.42
25.53
20.96
13.24
Return on Working Capital
%
29.82
25.47
40.37
56.39
31.13
Sales Growth
%
-0.63
4.37
9.19
88.62
-8.26
Operating Income Growth
%
2.45
-4.69
24.38
72.90
33.17
EBITDA Growth
%
2.45
-4.69
24.38
72.90
33.17
Net Income Growth
%
5.97
20.10
35.22
54.16
27.76
EPS Growth
%
0.94
11.99
35.42
39.65
17.76
Working Capital Growth
%
-12.47
51.03
73.76
-4.56
31.62
Operating Costs (% of Sales)
%
76.76
77.45
75.31
78.33
76.36
Administration Costs (% of Sales)
%
8.23
6.53
7.84
4.86
8.67
Current Ratio
Absolute
2.14
2.78
2.23
1.45
1.69
Quick Ratio
Absolute
1.36
1.66
1.58
1.03
1.00
Cash Ratio
Absolute
0.72
0.90
1.04
0.35
0.69
Debt to Equity Ratio
Absolute
0.60
0.64
0.65
0.50
0.40
Net Debt to Equity
Absolute
0.97
0.92
0.98
0.71
0.63
Debt to Capital Ratio
Absolute
0.42
0.40
0.40
0.36
0.28
Dividend Cover Book Value per Share Profitability Ratios
Growth Ratios
Cost Ratios
Liquidity Ratios
Leverage Ratios
Glomac Berhad
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Unit/Currency
2014
2013
2012
2011
2010
Efficiency Ratios
Asset Turnover
Absolute
0.40
0.43
0.48
0.44
0.27
Fixed Asset Turnover
Absolute
1.09
1.19
1.26
1.14
0.71
Inventory Turnover
Absolute
1.27
1.24
2.04
2.02
0.93
Current Asset Turnover
Absolute
0.68
0.72
0.90
0.81
0.54
Capital Employed Turnover
Absolute
0.76
0.86
1.02
1.00
0.57
Working Capital Turnover
Absolute
1.28
1.13
1.64
2.60
1.32
2.21
0.06
0.12
0.56
Revenue per Employee
MYR
2,107,979.00
Net Income per Employee
MYR
337,633.00
Capex to Sales Source: World Market Intelligence
%
0.14
Glomac Berhad
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Table 3: Glomac Berhad - Key Ratios - Interim Key Ratios
Unit/Currency
Oct-2014
Jul-2014
Apr-2014
Jan-2014
Equity Ratios
Interim EPS (Earnings per Share)
MYR
0.03
0.03
0.03
0.02
Book Value per Share
MYR
1.24
1.25
1.25
1.21
Gross Margin
%
41.19
39.27
42.12
27.93
Operating Margin
%
24.34
29.11
21.97
19.30
Net Profit Margin
%
15.27
19.57
12.77
12.36
Profit Markup
%
70.04
64.65
72.77
38.75
PBT Margin (Profit Before Tax)
%
24.34
29.11
21.97
19.30
Operating Costs (% of Sales)
%
75.66
70.89
78.03
80.70
Administration Costs (% of Sales)
%
13.72
10.01
7.19
9.08
Profitability Ratios
Cost Ratios
Liquidity Ratios
Current Ratio
Absolute
2.56
2.72
2.14
3.06
Quick Ratio
Absolute
1.48
1.69
1.36
1.87
Debt to Equity Ratio
Absolute
0.60
0.58
0.60
0.57
Net Debt to Equity
Absolute
0.84
0.81
0.97
0.80
Debt to Capital Ratio
Absolute
0.41
0.40
0.42
0.38
Leverage Ratios
Source: World Market Intelligence
Table 4: Glomac Berhad - Key Capital Market Indicators Key Ratios
30-Jan-2015
P/E (Price/Earnings) Ratio
6.61
EV/EBITDA (Enterprise Value/Earnings Before Interest, Taxes, Depreciation and Amortization)
7.03
Enterprise Value/Sales
1.64
Enterprise Value/Operating Profit
7.03
Enterprise Value/Total Assets
0.65
Dividend Yield
0.05
Note: Above ratios are based on share price as of 30-Jan-2015. The above ratios are absolute numbers. Source: World Market Intelligence
Glomac Berhad
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2.2 2.2.1
Glomac Berhad - Key Financial Performance Indicators Glomac Berhad - Revenue and Operating Profit
The consolidated group revenue of the company for 2014 stood at US$214 million, which corresponds to a decline of 0.63% over the previous year. The operating margin of the company was 23.24% in 2014, an increase of 70.00 basis points over the previous year. Figure 1: Glomac Berhad - Revenue and Operating Profit
Source: World Market Intelligence
Glomac Berhad
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2.2.2
Glomac Berhad - Asset and Liabilities
The company's assets grew 7.25% over the previous year to US$542 million in 2014. The company's liabilities grew 2.78% over the previous year to US$26 1 million in 2014. The company's asset to liability ratio improved from 1.99 in 2013 to 2.08 in 2014. Figure 2: Glomac Berhad - Financial Position
Source: World Market Intelligence
Glomac Berhad
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2.2.3
Glomac Berhad - Net Debt vs. Gearing Ratio
The company recorded higher net debt of US$167 million at the end of fiscal year 2014 when compared to the previous year's net debt of US$160 million. The company's gearing ratio for the year 2014 was 0.35, which was lower when compared to the previous year's gearing ratio of 0.52. The gearing ratio remained lower in 2014 due to lower debt funding activities over equity. Figure 3: Glomac Berhad - Net Debt vs. Gearing Ratio
Source: World Market Intelligence
Glomac Berhad
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2.2.4
Glomac Berhad - Operational Efficiency
The company's working capital turnover for 2014 grew to 1.28, from the previous year's working capital turnover of 1.13. In 2014, the company's asset turnover declined to 0 .40 from the previous year's asset turnover of 0.43. Figure 4: Glomac Berhad - Operational Efficiency
Source: World Market Intelligence
Glomac Berhad
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2.2.5
Glomac Berhad - Solvency
In 2014, the company's current ratio declined to 2.14 from the previous year's current ratio of 2.78. The company’s quick ratio declined to 1.36 in 2014 from the previous year's quick ratio of 1.66. In 2014, the company’s debt ratio decreased to 0.31 from the previous year's debt ratio of 0.32. Figure 5: Glomac Berhad - Solvency
Source: World Market Intelligence
Glomac Berhad
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2.2.6
Glomac Berhad - Valuation
As of 30-Jan-2015, the company recorded an EV/EBIT of 7.03, EV/Total Assets of 0.65 and EV/Sales of 1.64. Figure 6: Glomac Berhad - Valuation
Source: World Market Intelligence
Glomac Berhad
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2.3
Glomac Berhad - Competitive Benchmarking
The following companies are the major competitors of Glomac Berhad: Amcorp Properties Berhad (Ticker: AMPROP) Bandar Raya Developments Berhad Karambunai Corporation Berhad (Ticker: KBUNAI) MB Group S P Setia Berhad (Ticker: SPSETIA) Sunrise Berhad Sunway REIT Management Sdn Bhd (Ticker: SUNREIT)
Glomac Berhad
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For competitive benchmarking, latest financial results are considered. Following are the key performance indicators against which the companies have been benchmarked: 2.3.1
Glomac Berhad - Market Capitalization
As of 30-Jan-2015, the company recorded a market capitalization of US$223 million, lower than its close competitors S P Setia Berhad (Ticker: SPSETIA) and Sunway REIT Management Sdn Bhd (Ticker: SUNREIT) which recorded market capitalizations of US$2,768 million and US$1,408 million respectively. The company recorded earnings per share of US$0.05 in 2014, which has led to a price/earnings ratio (P/E ratio) of 6.61. This was lower than the P/E ratios of its peers, S P S etia Berhad (Ticker: SPSETIA) and Sunway REIT Management Sdn Bhd (Ticker: SUNREIT), which recorded P/E ratios of 21.71 and 11.02 respectively. Figure 7: Glomac Berhad - Market Capitalization
Source: World Market Intelligence Note: Company names are represented by ticker symbols Bubble size represents Market Capitalization US$ Million For those data points with negative values, bubbles will not be displayed. Where the market cap is d isproportionately smaller, a bub ble may not be displayed.
Glomac Berhad
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2.3.2
Glomac Berhad - Efficiency
The company recorded an operating margin of 23.24% in 2014. This was lower than the operating margin of its peers, Amcorp Properties Berhad (Ticker: AMPROP) and Sunway REIT Management Sdn Bhd (Ticker: SUNREIT), which recorded the margins of 79.83% and 96.10% respectively. In terms of revenues, the company is 0.18 times of S P Setia Berhad (Ticker: SPSETIA), 3.98 times of Amcorp Properties Berhad (Ticker: AMPROP), and 1 .58 times of Sunway REIT Management Sdn Bhd (Ticker: SUNREIT). Figure 8: Glomac Berhad - Efficiency
Source: World Market Intelligence Note: Company names are represented by ticker symbols
Glomac Berhad
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2.3.3
Glomac Berhad - Turnover – Inventory and Asset
In 2014, the company reported an inventory turnover of 1.27, higher than that of its peers: during the same period, S P Setia Berhad (Ticker: SPSETIA), Amcorp Properties Berhad (Ticker: AMPROP) and Sunway REIT Management Sdn Bhd (Ticker: SUNREIT), recorded inventory turnovers of 0.89, 0.62 and 0.00 respectively. The company’s asset turnover in 2014 was 0.40, higher than the asset turnovers of its peers: during the same period, S P Setia B erhad (Ticker: SPSETIA), Amcorp Properties B erhad (Ticker: AMPROP) and Sunway REIT Management Sdn Bhd (Ticker: SUNREIT) recorded asset turnovers of 0.29, 0.12 and 0.08 respectively. Figure 9: Glomac Berhad - Turnover – Inventory and Asset
Source: World Market Intelligence Note: Company names are represented by ticker symbols
Glomac Berhad
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2.3.4
Glomac Berhad - Liquidity
The company reported a current ratio of 2.14 in 2014, lower than that of its peers: during the same period, S P Setia Berhad (Ticker: SPSETIA) and Amcorp Properties Berhad (Ticker: AMPROP) recorded current ratios of 2.30 and 3.95 respectively. In 2014, the company's debt to equity ratio was 0.60, higher than that of its peers: during the same period, Amcorp Properties B erhad (Ticker: AMPROP) and Sunway REIT Management Sdn Bhd (Ticker: SUNREIT) recorded debt to equity ratios of 0.39 and 0.47 respectively. Figure 10: Glomac Berhad - Liquidity
Source: World Market Intelligence Note: Company names are represented by ticker symbols
Glomac Berhad
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3 Glomac Berhad - Recent Developments Press Statement on Glomac Berhad's unaudited results for the 3rd Quarter ended 31 January 2014
Glomac Berhad announced unaudited results for the third quarter of its financial year ending 30 April 2014. Published Date : 3/20/2014 10:49:01 AM OTHERS Press Statement on Glomac Berhad's unaudited results for the 2nd Quarter ended 31 October 2013
Glomac Berhad announced unaudited results for the first half of its financial year ending 30 April 2014. Published Date : 12/3/2013 12:00:00 AM Others proposed renewal of authority for share buy-back; and proposed renewal of shareholders - Glomac Berhad
The Board of Directors of Glomac Berhad ("the Company") wishes to inform that the Company intends to seek the approval of the members for the following matters at the forthcoming Annual General Meeting of the Company: Published Date : 8/20/2013 12:00:00 AM Source: World Market Intelligence
Glomac Berhad
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4 Glomac Berhad - SWOT Analysis 4.1
Glomac Berhad - SWOT Analysis - Overview
Glomac is a real estate development company which provides property development, property investment and management, construction and car park management services. The company’s diversified service portfolio, enhanced financial position and strong operating performance are its major strengths, even as limited liquidity position remains an area of concern. Going forward, volat ile input prices and shortage of skilled labor may impact the company’s performance. However, strategic growth initiatives and positive outlook for Malaysian construction industry are likely to offer new growth avenues for the company.
4.2
Glomac Berhad - Strengths
Strengths - Diversified business operations
Glomac has well-diversified business operations that mitigate the risks associated with overdependence on single or select business division for a major share of revenues. The company operates through four divisions: property development, construction, property investment and others. The property development division develops and sells residential and commercial properties. It also develops township projects and mixed development projects. The construction division provides construction contracting services in Malaysia and primarily undertakes residential and commercial development projects and turnkey projects. The investment division of the company involves in investment of land and buildings for investment potential and rental income in future. And the Other division of the company provides property and building management services to residential and commercial projects. It also offers professional and complete car park management and consultancy services from pre-operations to operations. These divisions accounted for 83.8%, 12.1%, 1.4% and 2.7% of the company’s total revenues, respectively. Presence in these divisions helps the company avoid overdependence on any particular division, minimizing its business risks. It also helps the company to serve a diversified customer base and generate higher revenues. Strengths - Strong liquidity position
Glomac's current ratio was 2.8 at the end of FY2013 significantly higher than 2.2 at the end of the FY2012. Furthermore, this was higher than its competitors - Gamuda Berhad (Gamuda) and Karambunai Corporation Berhad (Karambunai) which recorded current ratios of 2.3 and 0.2 respectively. A higher than the competitors' current ratio indicates that the company is in a stronger financial position than other companies in the industry. At the end of the review year, the company had total current assets worth MYR940.7 million (an increase of 30.2% over the previous year), with cash and equivalents worth MYR222.9 million. Therefore, a strong cash and liquidity position provides the company with an advantage while funding any potential opportunity arising in the m arket. Strengths - Strong operating performance
Glomac displayed strong operating performance in FY2013 during which the company recorded revenues of MYR680.93 million, with an annual growth of 4.3% and a CAGR of 18.50% during FY2009-2013. The operating margin of Glomac was 22.5% in FY2013 which was higher than its competitors such as Gamuda and Karambunai which reported operating margins of 13.2% and 8.2% respectively. In addition, its return on equity (ROE) was 12.8% during the review period, significantly higher than its competitors such as Gamuda and Karambunai which reported ROEs of 11.0% and -3.5% respectively. Therefore, strong operating performance against its peer group helps enhance investors’ confidence and improve the growth prospects of the company.
4.3
Glomac Berhad - Weakness es
Weaknesses - Limited financial leverage
Limited financial leverage or solvency position of th e company may impact its ability to borrow and repay money, which, in turn, affects its business operations. The solvency position of Glomac may be limited due to significant debt funding than equity. The company recorded a debt-to-equity ratio of 0.6 at the end of FY2013 against its competitors such as Gamuda and AMCORP Properties Berhad (AMCORP) which reported debt-to-equity ratios of 0.5 and 0.3 respectively. Furthermore, at the end of FY2013, the company recorded a 21.9% increase decrease in debt to MYR506.8 million, compared with MYR415.68 million at the end of the previous year. Limited solvency position indicates utilization of higher financial advantage and its comparative weaker equity position, indicating the lower creditworthiness of the company.
Glomac Berhad
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4.4
Glomac Berhad - Opportunities
Opportunities - Positive outlook for Malaysian construction industry
Glomac is likely to benefit from the positive outlook in the construction industry in Malaysia. According to in-house research, the construction industry in Malaysia registered a 25.9% annual growth rate in 2012 and reached a value of MYR80.9 billion in FY2012. This was primarily due to the growth was supported by the country’s expanding economy and increased government spending on public infrastructure. Furthermore, the construction industry is expected to value MYR139.3 billion in 2017 and record a CAGR of 11.48% during 2012 –2017 (forecast period), The r esidential construction market was the second-largest construction market in the Malaysian construction industry which accounted for 22.7% of total construction output and valued MYR18.3 billion in 2012 and is expected to reach a value MYR29.9 billion in 2017 recording a CAGR of 10.29% during the forecast period. In addition, the commercial construction market accounted for 10.7% of total output and valued MYR8.6 billion in 2012. This is expected to record a CAGR of 6.91% over the forecast period and reach a value of MYR12 billion by 2017. In the same line, Glomac offers property investment and development services for residential and commercial projects in Malaysia. Therefore, the company may benefit from this growing market by gaining new contracts in Malaysia and increase its revenues. Opportunities - Strategic growth initiatives
Glomac is taking various strategic initiatives to drive its business growth. For instance in June 2013, the company purchased 192 acres of land in Dengkil (Saujana KLIA) for MYR66.8 million. This property will be available to home buyers who are willing to buy affordable landed units. Furthermore, in February 2013, Glomac through a public auction acquired 200-acre leasehold parcel next to Bandar Saujana Utama for MYR44.0 million. In FY2013, the company also acquired Anugerah Armada Sdn Bhd and Magnitud Teknologi Sdn. Bhd, the property development companies. Such strategic initiatives are expected to align the company's business operations in line with the industry and generate higher returns.
4.5
Glomac Berhad - Threats
Threats - Volatile input prices
Glomac may face increase in its operational costs, primarily due to increasing volatility in input costs, especially in raw materials and material components such as steel materials and cement, in various parts of the world. Steel and cement prices are largely affected by volatile nature of coking coal, iron ore and oil prices. The price of global composite carbon steel increased from US$ 686 per ton in Ju ne 2013 to US$ 716 per ton in December 2013. Furthermore, according to the US Energy Information Administration, the average crude oil price too h ave been volatile, increasing from an average US$ 94.12 per barrel in 2012 to US$97.91 per barrel in 2013. Volatile input costs hinder effective pricing strategies to secure and retain business. Moreover, increased costs may reduce margins, affecting the p rofitability and long-term sustainability of the company. Threats - Shortage of skilled labor
The construction sector in Malaysia may face labor shortage, which, in turn, may affect the company's business. The construction in Malaysia is one of the sectors dependent on cheaply available foreign mig rants. To meet the shortfall, the Malaysian government initiated Amnesty program in June 2011 for legalizing illegal immigrant labors to meet the labor shortfall. Another challenge for contractors and construction firms is in finding qualified sub-contractors, trained management and skilled workers to carry out complex project works. Aging workforce is the other concern that may further intensify the situation. Though Construction Industry Development Board (CIBD) Malaysia had been imparting training to the construction personnel since 1997, this still might not close the gap b etween demand and supply. Shortage of skilled and unskilled labor, especially at home market, may act as a road block to the company’s future expansion plan and ability to execute projects on time.
Glomac Berhad
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5 Glomac Berhad - Company Statement A statement b y Mr. Mohamed Mansor Bin Fateh Din, the Chairman of Glomac is given below. The statement has been taken from the company's 2013 annual report. Advancing on the momentum gained over the past three years, the Glomac Group once again pulled off a record-breaking year in FY2013 as net profit increased by 20.1% to breach the MYR100 million mark for the first time. Another record was achieved in sales as the Group reaped in MYR802 million, and attained an all-time high of MYR888 million in unbilled sales. This was driven by the success our ongoing projects such as Glomac Damansara, Reflection Residences and the township developments of Bandar Saujana Utama and S aujana Rawang; as well as the successful launch of key projects within Lakeside Residences in Puchong. These results are testament to the Group’s astuteness in identifying prime land banks and development concepts. Moving ahead, Glomac is on firm footing for further growth in the upcoming financial year. Dividends On the back of FY 2013’s outstanding performance, Glomac Berhad is proud to continue our unblemished dividend paying record since our establishment over a decade ago. On top of that we are proud to maintain our standing as one of the top dividend paying property developers in Malaysia.
The Board of Directors has proposed a final gross dividend of 3.5 sen per share less 25% tax. Total dividend per s hare for the current financial year would amount to 6.5 sen. This is 1 sen higher than what was paid out the previous financial year. Operating Environment In 2012 the Malaysian economy grew by 5.6% (5.1% in 2011), performing better than expected, despite a challenging global economic environment. Malaysia’s overall economic growth performance was buttressed by strong domestic demand driven by both household and business spending. The property market growth was slower compared to 2011, yet it remained at a record high level in 2012. The moderation in g rowth in property transactions occurred during the first half of the year due mainly to Bank Negara Malaysia’s (BNM’s) implementation of Responsible Lending Guidelines, whereby banks are now required to base their loan approvals on net income instead of gross income. This put the curb on rising house prices. According to the Valuation and Property Services Department (JPPH), national house price index rose 7.2% during the year to end-Q3 2012 (5.8% inflation-adjusted), the lowest year-on-year increase since Q2 2010. Improved performance towards the end of the year balanced out g rowth as the market slowly picked up due to th e strong buying interest among local as well as foreign investors. As a whole, the year recorded 427,520 transactions valued at MYR142.84 billion in 2012, as compared to 430,403 transactions valued at MYR137.83 billion in 2011. Despite the moderation in growth, the overall property market remained at a record high level in 2012. Positive influences that perked up activities and speculation within the market du ring the period under review included the construction progress of the Klang Valley MRT and other ETP initiated projects such as Warisan Merdeka Tower, Tun Razak Exchange (TRX) and Iskandar Malaysia. The housing sector remained strong despite restrained price increases and caution on oversupply issues with regards to high-end condominium projects; buoyed by demand for homes within selected locations in Greater KL and Selangor as well as certain other states. Residential construction was buoyant, with Housing approvals rising 47.4% in 2012 to 235,249 units, according to the Ministry of Housing and Local Government. The value of residential construction work rose 24.9% on the year in Q4, to MYR5.76 billion. With our balanced mix of affordable township and niche landed properties within the Greater KL area, Glomac was wellpositioned to capitalize on this scenario. Strategically located and, in several cases, set to benefit from pr oximity to future MRT and LRT lines, Glomac’s projects continued to enjoy strong demand spurring profit to MYR102.3 million in FY2013. The Group achieved new sales of MYR802 million due largely to healthy take-up rates for launches at Reflection Residences @ Mutiara Damansara, Glomac Centro in Petaling Jaya as well as Bandar Saujana Utama and Saujana Rawang. Lakeside Residences in Puchong, the Group’s new MYR2.7 billion flagship development, also attracted overwhelming response. Leveraging on our reserve of available land bank within the Greater KL area, Glomac is primed and ready to accelerate our momentum going forward. We anticipate another exciting year ahead with growth underpinned by the Group’s high unbilled sales and planned multiple launches from its strategic land banks.
Glomac Berhad
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Prospects Prolonged weakness in the external environment has affected the overall growth performance of the economy, leading Bank Negara to revise the overall GDP growth target for Malaysia in 2013 to 4.5% from its earlier target of 5%.However, while this points to a moderation in g rowth due to the weak external sector, domestic demand is expected to remain on its steady growth trajectory and continues to be supported by an accommodative monetary policy. The first half of 20 13 proved to be challenging to developers and property sellers as buyers adopt a “wait -and-see” attitude regarding property investments in lieu of the general election. Uncertainties surrounding Bursa Malaysia and the economy as a whole were also a strong contributing factor. The Banks’ tighter financing criteria, looming introduction of Goods and Services Tax (GST) and higher Real Property Gains Tax (RPGT) contribute to a cooling down in the market after a period of rising asking and transacted prices for the past two years. Signs point to a continued rise in the prices of residential properties albeit at a slower rate – possibly in the single digits. More concrete positive developments which continue to sustain the market through 2013, include mega infrastructure projects such as the MRT (Mass Rapid Transit) and also the newly announced high speed rail project, linking Kuala Lumpur to Singapore. Developments in the Iskandar Region and the East Coast Economic Region are also positive for the property market and the economy in general. Townships and landed homes remain favorable due to sustained demand from locals. Those positioned near the MRT lines continue to be identified as excellent investment choices; given the in creasingly heavy traffic situation in Greater KL. Therefore, moving forward, Glomac is well positioned to continue on a growth trajectory with our balanced mix of ideally located, affordable products within the Greater KL area. The outstanding launch of Lakeside Residences denotes that we have hit on the right conceptualisation in our project mix. Lakeside Residences has become a part of Puchong’s thriving commercial hub, and the guarded development will also benefit from the LRT (light rail transit) extension line which starts from the Sri Petaling station and passes through Kinrara, Puchong and ends at Putra Heights. The extension is scheduled for completion in 2014. The Group’s earnings growth will come from its record unbilled sales of MYR888 million, alongside its pipeline of development projects with a total available GDV of about MYR7 billion to capture strong demand in landed property. In the coming financial year, a total MYR1.3 billion worth of projects have already been identified to cater to the strong demand for landed residential units at selected locations in Greater KL priced at MYR1 million and below.
This includes the development of a new 230-acre township in Saujana KLIA earmarked for launch in 2014. Expected to contribute a GDV of MYR1.2 billion, this township will cater to home buyers looking for affordable alternatives to the double-storey homes currently available in th e vicinity. Glomac will also build on the success of Bandar Saujana Utama with the future launch of Saujana Utama 4 – a 200-acre development land bank adjacent to Saujana Utama. This is expected to generate potential GDV of MYR800 million. The Group anticipates that in the next two years, 60% to 65% of Group sales will come from residential units and 35% to 40% from commercial units. Corporate Social Responsibility As our presence widens so to will our contribution to the social well-being of the communities we s erve. The Group is cognizant of the need to continuously bolster our growth as a socially responsible company, by broadening our CSR scope by synergizing our business strategies and focus on stakeholder sustainability. The core of our commitment to CSR is based on the thrusts of building homes and communities that enrich the lifestyles of our customers, practicing good corporate governance and investor relations, caring for the development and well-being of our employees within a safe and nurturing workplace, implementing environmentally sustainable practices and processes, and enriching the lives of the local communities through continued support of charitable programs and activities.
Glomac Berhad
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6 Glomac Berhad - History Table 5: Glomac Berhad - History Year
Event type
Description
2014
Contracts/Agreements
The compa ny entered into an agreement to acquire the Precious Quest Sdn Bhd.
2013
Asset Disposal
The compa ny disposed an office building in Australia for AUD43.8 million.
2013
Acquisitions/Mergers/Takeovers The compa ny acquired Magic Season Sdn. Bhd.
2012
Acquisitions/Mergers/Takeovers Glomac Berhad acquired Magical Sterling Sdn Bhd in Malaysia.
2012
Acquisitions/Mergers/Takeovers
2012
Acquisitions/Mergers/Takeovers Glomac Berhad acquired Kelana Kualiti Sdn Bhd.
2012
Acquisitions/Mergers/Takeovers
2012
Acquisitions/Mergers/Takeovers Glomac Berhad acquired Magical Sterling Sdn Bhd and Crest Dollars Sdn Bhd
2011
Acquisitions/Mergers/Takeovers Glomac acqui red a property development company Berapit Pertiwi Sdn. Bhd.
2010
Acquisitions/Mergers/Takeovers The compa ny acquired Berapit Properties Sdn. Bhd, a property development company.
2010
Contracts/Agreements
The company signed a joint venture agreement With Score Option Sdn Bhd to develop a portion of land in the Mukim Of Petaling, Daerah Petaling, Negeri Selangor Darul Ehsa.
2009
Business / Operations Closure
The company's wholly owned subsidiary, Glomac Mauritius Ltd (GML) closed its operations.
2009
Asset Disposal
The company's wholly owned subsidiary, Glomac Damansara Sdn Bhd entered into a sale and purchase agreement with Lembaga Tabung Haji to sell Tower D in development of Glomac Damansara.
2009
Acquisitions/Mergers/Takeovers
Glomac acquired Glomac Kristal Sdn Bhd and FDM Development Sdn Bhd for a total cash consideration of MYR2.00 each respectively.
2009
Acquisitions/Mergers/Takeovers
The company acquired BH Interiors Sdn Bhd, a provider of renovation services for residential and commercial developments.
2008
The company's wholly owned subsidiary, Glomac Al Batha Mutiara Sdn Bhd, entered into a sale and purchase agreement with Mutiara Rini Sdn Bhd to purchase two pieces Acquisitions/Mergers/Takeovers of subdivided vacant freehold land located in the commercial zone of Mutiara Damansara.
2008
Acquisitions/Mergers/Takeovers
The company's wholly owned subsidiary, Glomac Jaya Sdn Bhd, has completed the acquisition of land from Setia Haruman Sdn Bhd.
2008
Contracts/Agreements
Glomac signed a memorandum of understanding (MOU) with Suria Capital Holdings Berhad to of combine their resources and develop certain specified precincts in the proposed Jesselton Waterfront Project.
The company has acquired Magnitud Teknologi Sdn Bhd and Anugerah Armada Sdn Bhd.
Glomac Berhad acquired Kristal Taipan Sdn Bhd, a property development company in Malaysia.
Glomac Berhad
__________________________________________________________________________________________ Table 5: Glomac Berhad - History Year
Event type
Description
2008
Asset Disposal
Glomac's wholly owned subsidiary, Glomac Al Batha Sdn Bhd entered into a sale and purchase agreement (SPA) with Prestige Scale Sdn Bhd to sell Grade A office tower in Kuala Lumpur.
2008
Asset Purchase
Glomac's subsidiary, Glomac Jaya Sdn Bhd entered into a sale and purchase agreement (SPA) with Cyberview Sdn Bhd and Setia Haruman Sdn Bhd to acquire 8.12 acres (3.2894 hectares) of freehold land.
2007
Acquisitions/Mergers/Takeovers
Glomac acquired Glomac Mauritius Ltd (GML), a property development company in the Republic of Mauritius.
2007
Glomac acquired 90.0% of the equity interest in Glomac Thailand Sdn Bhd (formerly Acquisitions/Mergers/Takeovers known as Peace Pavilion Sdn Bhd), a provider of property investment, development, and management services.
2006
Acquisitions/Mergers/Takeovers Glomac acquired 100.0% equity of GLOMAC DAMANSARA SDN BHD (GDSB).
2006
Acquisitions/Mergers/Takeovers
Glomac acquired 70.0% stake in FDA SDN BHD (FDA), a property development company.
2006
Acquisitions/Mergers/Takeovers
Glomac acquired 51.0% of the equity interest in Glomac Al Batha Sdn Bhd (formerly known as Pinang Prestasi Sdn Bhd), a property development and investment company.
2006
Acquisitions/Mergers/Takeovers The compa ny acquired GLOMAC AUSTRALIA PTY LTD (GAPL).
2005
Acquisitions/Mergers/Takeovers Glomac acquired Glomac City Sdn. Bhd.
2005
Acquisitions/Mergers/Takeovers The compa ny acquired 49.0% equity in Glomac Jaya Sdn Bhd.
2005
Acquisitions/Mergers/Takeovers
Glomac acquired Glomac Leisure Sdn. Bhd which provides property development services.
2005
Contracts/Agreements
The company's subsidiary, Prominent Excel Sdn Bhd, entered into a Joint Venture Agreement w ith PT. Se jahtera Abadi J aya to manage a nd op erate the business of car park management services in Indonesia.
2000
Stock Listings/IPO
The company’s shares were listed on Bursa Malaysia Securities.
1988
Incorporation/Establishment
Glomac was founded by Datuk Richard Fong and Tan Sri Dato' FD Mansor
Source: World Market Intelligence
Glomac Berhad
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7 Glomac Berhad - Key Employees Table 6: Glomac Berhad - Key Employees Name
Job Title
Board Level
Since
Age
Ali Bin Tan Sri Abdul Director Kadir
Non Executive Board
2009
64
Chong Kok Keong
Non Executive Board
2000
64
Fateh Iskandar bin Tan Chief Executive Officer, Managing Sri Mohamed Mansor Director
Executive Board
2009
45
Ikhwan Salim Bin Haji Director Sujak
Non Executive Board
2000
56
Richard Fong Loong Tuck Vice Chairman
Executive Board
Tan Sri MohamedMansor Chairman Bin Fateh Din
Executive Board
Director
Source: World Market Intelligence
62
Glomac Berhad
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8 Glomac Berhad - Key Employee Biographies Table 7: Glomac Berhad - Key Employee Biographies
Fateh Iskandar bin Tan Sri Mohamed Mansor Job Title : Chief Executive Officer, Managing Director Since : 2009 Age : 45
Mr. Mohamed Mansor has been the Chief Executive Officer and Managing Director of the company since 2009 and 2004 respectively. Prior to this, he served as a company’s Group Executive Director from 1997 up to 2004. He joined the company in 1991 and was appointed as a Board Member in 1997. Currently, he also serves as he the Deputy President of The Real Estate & Housing Developer’s Association, Malaysia, a Director of Malaysia Property Incorporated, the Vice Chairman of the Malaysian Australian Business Council, Chairman of Gagasan Badan Ekonomi Melayu, Selangor Branch and the Treasurer of Selangor State UMNO. He also serves as the Co-Chairman of the Special Taskforce and a Member of PEMUDAH Selangor Group. In addition, he serves as a Board Member of Axis Reit Managers Berhad, Media Prima Berhad and New Straits Times Press (Malaysia) Berhad.
Tan Sri MohamedMansor Bin Fateh Din Job Title : Chairman Since : Age :
Richard Fong Loong Tuck Job Title : Vice Chairman Since : Age : 62
Source: World Market Intelligence
Mr. Fateh Din is the Chairman of the company. He is one of the founders of the company and was appointed as a Board Member in 1986. Prior to this, he served for Utusan Malaysia Berhad as the Group Personnel Director. He also served as the Honorary Secretary of the Malay Chamber of Commerce and Industry, Selangor from 1987 to 1995.
Mr. Loong Tuck is the Vice Chairman of the company. He is one of the founders the company and was appointed as a Board Member in 1988. Prior to this, he served for Mudajaya Construction Sdn Bhd and IJM Corporation Berhad. He also served as the Secretary General of FIABCI (International Real Estate Federation) Malaysian Chapter from 1998 to 2000 and President of FIABCI Malaysia from 2006 to 2010. From February to 2010 Loong Tuck served as the Chairman of MPI.
Glomac Berhad
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9 Glomac Berhad - Locations and Subsidiaries 9.1
Glomac Berhad - Head Office
Glomac Berhad Level 15, Menara Glomac Kuala Lumpur Zip: 60000 Malaysia Tel: + 60 3 77239000 Fax: + 60 3 77297000
9.2
Glomac Berhad - Other Locations and Subsidiaries
Table 8: Glomac Berhad - Subsidiaries Glomac Nusantara Sdn Bhd
Berapit Development Sdn Bhd
Glomac Square
Kelana Business Centre
Kelana Jaya
Kelana Jaya
Malaysia
Malaysia
Glomac Rawang Sdn Bhd
Glomac Realty Sdn Bhd
Saujana Rawang
Glomac Business Centre
Rawang
Kelana Jaya
Malaysia
Malaysia
Berapit Properties Sdn. Bhd. Glomac Maju Sdn Bhd Suria Residen Cheras Malaysia
Level 1, Menara Glomac Glomac Damansara Kuala Lumpur Zip: 60000 Malaysia
Glomac Bina Sdn. Bhd. Glomac Land Sdn Bhd Saujana Utama Sungai Buloh Malaysia
No. 336, Block A, Kompleks Kelana Centre Point Jalan SS 7/19 Selangor Zip: 47301 Malaysia
Glomac Berhad
__________________________________________________________________________________________ Table 8: Glomac Berhad - Subsidiaries Magic Season Sdn Bhd
Glomac Resources Sdn Bhd
Saujana Utama II
Glomac Galleria
Sungai Buloh
Sri Hartamas
Malaysia
Malaysia Glomac Vantage Sdn Bhd
Dunia Heights Sdn Bhd
Taman Mahkota Laksamana
Selangor
Seksyen 3
Malaysia
Malacca Malaysia
FDA Sdn. Bhd.
Glomac Alliance Sdn Bhd
12th Floor, Wisma Glomac 3
Lakeside Residences
Komplek Kelana Centre Point
Kompleks Kelana Centre Point
Selangor
Selangor
Malaysia
Malaysia
Source: World Market Intelligence
Table 9: Glomac Berhad - Locations Property Gallery Sri Saujana, Johor
Property Gallery Saujana Utama
No3, Jalan SS2/2, Sri Saujana
No. 31G & 32G, Jalan Bidara 8
Kota Tinggi
SU Mall, Saujana Utama 3
Zip: 81900
Zip: 47000
Malaysia
Malaysia
Tel: + 60 7 8821033
Tel: + 60 3 60385888
Fax: + 60 7 8828150
Fax: + 60 3 60385786
Property Management
Property Gallery Saujana Rawang
Level 5, Menara Glomac
Jalan SR 8/1
Glomac Damansara, Jalan Damansara
Persiaran Tasik, Saujana Rawang
Kuala Lumpur
Rawang
Zip: 60000
Zip: 48000
Malaysia
Malaysia
Tel: + 60 3 77239000
Tel: + 60 3 60935160
Fax: + 60 3 77297000
Fax: + 60 3 60936161
Lot 35449
Level 1, Menara Glomac
Jalan Perindustrian Puchong
Glomac Damansara
Puchong
Kuala Lumpur
Zip: 47100
Zip: 60000
Malaysia
Malaysia
Tel: + 60 3 80637799
Tel: + 60 3 77239000
Fax: + 60 3 80636363
Fax: + 60 3 77297000
Source: World Market Intelligence
Glomac Berhad
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10 Appendix 10.1 Methodology World Market Intelligence company reports are based on a core set of research techniques which ensure the b est possible level of quality and accuracy of data. The key sources used include: Company Websites Company Annual Reports SEC Filings Press Releases Proprietary Databases
Notes Financial information of the company is taken from the most recently published annual reports or SE C filings The financial and operational data reported for th e company is as per the industry defined standards Revenue converted to US$ at average annual conversion rate as of fiscal year end
10.2 Ratio Definitions
Capital Market Ratios
Price/Earnings Ratio (P/E)
Capital Market Ratios measure investor response to owning a company's stock and also the cost of issuing stock. Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annual income earned per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of income, so the stock is more expensive compared to one with lower P/E ratio. A high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. Price per share is as of previous business close, and EPS is from latest annual report. Formula: Price per Share / Earnings per Share
Enterprise Value/Earnings before Interest, Tax, Depreciation & Amortization (EV/EBITDA)
Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in parallel with, or as an alternative to, the P/E ratio. The main advantage of EV/EBITDA over the PE ratio is that it is unaffected by a company's capital structure. It compares the value of a business, free of debt, to earnings before interest. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net Income + Interest + Tax + Depreciation + Am ortization)
Enterprise Value/Sales
Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs to buy the company's sales. EV/Sales is seen as more accurate than Price/Sales because market capitalization does not take into account the amount of debt a company has, which needs to be paid back at some point. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Sales
Enterprise Value/Operating Profit
Enterprise Value/Operating Profit measures the company's enterprise value to the operating profit. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Operating Income
Glomac Berhad
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Enterprise Value/Total Assets
Enterprise Value/Total Assets measures the company's enterprise value to the total assets. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total Assets
Dividend Yield
Dividend Yield shows how much a company pays out in d ividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. Formula: Annual Dividend per Share / Price per Share
Equity Ratios
Earnings per Share (EPS)
These ratios are based on per share value. Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company's profitability. Formula: Net Income / Weighted Average Shares
Dividend per Share
Dividend Cover
Dividend is the distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Dividend cover is the ratio of company's earnings (net income) over the dividend paid to shareholders. Formula: Earnings per share / Dividend per share
Book Value per Share
Book Value per Share m easure used by owners of common sh ares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Formula: (Shareholders Equity - Preferred Equity) / Outstanding Shares
Cash Value per Share
Cash Value per Share is a measure of a company's cash (cash & equivalents on the balance sheet) that is determined by dividing cash & equivalents by the total shares outstanding. Formula: Cash & equivalents / Outstanding Shares
Profitability Ratios
Gross Margin
Profitability Ratios are u sed to assess a company's ability to generate earnings, based on revenues generated or resources used. For most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that the company is doing well. Gross margin is the amount of contribution to the business enterprise, after paying for direct-fixed and direct variable unit costs. Formula: {(Revenue-Cost of revenue) / Revenue}*100
Operating Margin
Operating Margin is a ratio used to measure a company's pricing strategy and operating efficiency. Formula: (Operating Income / Revenues) *100
Net Profit Margin
Net Profit Margin is the ratio of net profits to revenues for a company or business segment - that shows how much of each dollar earned by the company is translated into profits. Formula: (Net Profit / Revenues) *100
Profit Markup
Profit Markup measures the company's gross profitability, as compared to the cost of revenue. Formula: Gross Income / Cost of Revenue
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PBIT Margin (Profit Before Interest & Tax)
Profit Before Interest & Tax Margin shows the profitability of the company before interest expense & taxation. Formula: {(Net Profit + Interest + Tax) / Revenue} *100
PBT Margin (Profit Before Tax)
Profit Before Tax Margin measures the pre-tax income over revenues. Formula: {Income Before Tax / Revenues} *100
Return on Equity
Return on Equity measures the rate of return on the ownership interest (shareholders' equity) of the common stock owners. Formula: (Net Income / S hareholders Equity)*100
Return on Capital Employed
Return on Capital Employed is a ratio that indicates the efficiency and profitability of a company's capital investments. ROCE should always be higher th an the rate at which the company borrows; otherwise any increase in borrowing will reduce shareholders' earnings. Formula: EBIT / (Total Assets – Current Liabilities)*100
Return on Assets
Return on Assets is an indicator of how profitable a company is relative to its total assets, the ratio measures how efficient management is at u sing its assets to generate earnings. Formula: (Net Income / Total Assets)*100
Return on Fixed Assets
Return on Fixed Assets measures the company's profitability to its fixed assets (pr operty, plant & equipment). Formula: (Net Income / Fixed Assets) *100
Return on Working Capital
Return on Working Capital measures the company's profitability to its working capital. Formula: (Net Income / Working Capital) *100
Cost Ratios
Operating costs (% of Sales)
Cost ratios help to understand the costs the company is incurring as a percentage of sales. Operating costs as percentage of total revenues measures the operating costs that a company incurs compared to the revenues. Formula: (Operating Expenses / Revenues) *100
Administration costs as percentage of total revenue measures the selling, general and Administration costs (% of administrative expenses that a company incurs compared to the revenues. Sales) Formula: (Administrative Expenses / Revenues) *100 Interest costs (% of Sales)
Interest costs as percentage of total revenues measures the interest expense that a company incurs compared to the revenues. Formula: (Interest Expenses / Revenues) *100
Leverage Ratios
Debt to Equity Ratio
Leverage ratios are used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to measure its ability to meet financial obligations. There are several different ratios, but the main factors looked at include debt, equity, assets and interest expenses. Debt to Equity Ratio is a m easure of a company's financial leverage. The debt/equity ratio also depends on the industry in which the company operates. For example, capitalintensive industries tend to have a higher debt equity ratio. Formula: Total Liabilities / Shareholders Equity
Debt to Capital Ratio
Debt to capital ratio gives an idea of a comp any's financial structure, or how it is financing its operations, along with some insight into its financial strength. The higher the debt-tocapital ratio, the more debt the company has compared to its equity. This indicates to investors whether a company is more prone to using debt financing or equity financing. A
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__________________________________________________________________________________________ company with high debt-to-capital ratios, compared to a general or industry average, may show weak financial strength because the cost of these debts may weigh on the company and increase its default risk. Formula: {Total Debt / (Total assets - Current Liabilities)} Interest Coverage Ratio
Interest Coverage Ratio is used to determine how easily a company can pay interest on outstanding debt, calculated as earnings before interest & tax by interest expense. Formula: EBIT / Interest Expense
Liquidity Ratios
Current Ratio
Liquidity ratios are used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the m argin of safety that the company possesses to cover short-term debts. A company's ability to turn short-term assets into cash to cover debts is of the utmost importance when creditors are seeking payment. Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to determine whether a company will be able to continue as a going concern. Current Ratio measures a company's ability to pay its short-term obligations. The ratio gives an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The high er the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. Formula: Current Assets / Current Liabilities
Quick Ratio
Quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Formula: (Current Assets - Inventories) / Current Liabilities
Cash Ratio
Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. It only looks at the most liquid short-term assets of the company, which are those that can be most easily used to pay off current obligations. It also ignores inventory and receivables, as there are no assurances that these two accounts can be converted to cash in a timely matter to meet current liabilities. Formula: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
Efficiency Ratios
Fixed Asset Turnover
Efficiency ratios measure a company's effectiveness in various areas of its operations, essentially looking at maximizing its use of resources. Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to generate sales. A higher ratio indicates the business has less money tied up in fixed assets for each currency unit of sales revenue. A declining ratio may indicate that the business is over-invested in plant, equipment, or other fixed assets. Formula: Net Sales / Fixed Assets
Asset Turnover
Asset turnover ratio measures the efficiency of a company's use of its assets in generating sales revenue to the company. A higher asset turnover ratio shows that the company has been more effective in using its assets to generate revenues. Formula: Net Sales / Total Assets
Current Asset Turnover
Current Asset Turnover indicates how efficiently the business uses its current assets to generate sales. Formula: Net Sales / Current Assets
Inventory Turnover
Inventory Turnover ratio shows how many times a company's inventory is sold and replaced over a period. A low turnover implies poor sales and, therefore, excess inventory. A high ratio implies either strong sales or in effective buying. Formula: Cost of Goods Sold / Inventory
Working Capital Turnover
Working Capital Turnover is a measurement to compare the depletion of working capital to the generation of sales. This provides some useful information as to how effectively a company is using its working capital to generate sales.
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Formula: Net Sales / W orking Capital Capital Employed Turnover
Capital employed turnover ratio measures the efficiency of a company's use of its equity in generating sales revenue to th e company. Formula: Net Sales / Shareholders Equity
Capex to sales
Capex to Sales ratio measures the company's expenditure (investments) on fixed and related assets' effectiveness when compared to the sales generated. Formula: (Capital Expenditure / Sales) *100
Net income per Employee
Net income per Employee looks at a company's net income in relation to the number of employees they have. Ideally, a company wants a higher profit per employee possible, as it denotes higher productivity. Formula: Net Income / No. of Employees
Revenue per Employee
Revenue per Employee measures the average revenue generated per employee of a company. This ratio is most useful when compared against other companies in the same industry. Generally, a company seeks the highest revenue per employee. Formula: Revenue / No. of Employees
Efficiency Ratio
Efficiency Ratio is used to calculate a bank's efficiency. An increase means the company is losing a larger percentage of its income to expenses. If the efficiency ratio is getting lower, it is good for the bank and its shareholders. Formula: Non-interest expense / Total Interest Income
Source : World Market Intelligence
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