Glomac Berhad (GLOMAC) - Company Profile and SWOT Analysis

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.
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Glomac Berhad - SWOT Profile
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Glomac Berhad
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TABLE OF CONTENTS
Glomac Berhad - Business Analysis .................................................................................................. 5

1.1
Glomac Berhad - Company Overview .............................................................................................................. 5
1.2
Glomac Berhad - Business Description ............................................................................................................ 6
1.3
Glomac Berhad - Major Products and Services ................................................................................................ 7
Glomac Berhad - Analysis of Key Performance Indicators ................................................................ 8

2.1
Glomac Berhad - Five Year Snapshot: Overview of Financial and 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 ............................................................................................. 13
2.2.4
Glomac Berhad - Operational Efficiency .................................................................................................... 14
2.2.5
Glomac Berhad - Solvency ........................................................................................................................ 15
2.2.6
Glomac Berhad - Valuation ........................................................................................................................ 16
2.3
Glomac Berhad - Competitive Benchmarking ................................................................................................. 17
2.3.1
Glomac Berhad - Market Capitalization ...................................................................................................... 18
2.3.2
Glomac Berhad - Efficiency ....................................................................................................................... 19
2.3.3
Glomac Berhad - Turnover Inventory and Asset ...................................................................................... 20
2.3.4
Glomac Berhad - Liquidity ......................................................................................................................... 21
Glomac Berhad - Recent Developments ........................................................................................... 22
Glomac Berhad - SWOT Analysis ..................................................................................................... 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
Glomac Berhad - Company Statement.............................................................................................. 25
Glomac Berhad - History................................................................................................................... 27
Glomac Berhad - Key Employees ..................................................................................................... 29
Glomac Berhad - Key Employee Biographies................................................................................... 30
Glomac Berhad - Locations and Subsidiaries .................................................................................. 31

9.1
Glomac Berhad - Head Office ........................................................................................................................ 31
9.2
Glomac Berhad - Other Locations and Subsidiaries ....................................................................................... 31
10
Appendix ........................................................................................................................................... 33
10.1
Methodology .................................................................................................................................................. 33
10.2
Ratio Definitions ............................................................................................................................................ 33
10.3
Disclaimer ..................................................................................................................................................... 37
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TABLE OF CONTENTS
Glomac Berhad - Business Analysis .................................................................................................. 5

1.1
Glomac Berhad - Company Overview .............................................................................................................. 5
1.2
Glomac Berhad - Business Description ............................................................................................................ 6
1.3
Glomac Berhad - Major Products and Services ................................................................................................ 7
Glomac Berhad - Analysis of Key Performance Indicators ................................................................ 8

2.1
Glomac Berhad - Five Year Snapshot: Overview of Financial and 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 ............................................................................................. 13
2.2.4
Glomac Berhad - Operational Efficiency .................................................................................................... 14
2.2.5
Glomac Berhad - Solvency ........................................................................................................................ 15
2.2.6
Glomac Berhad - Valuation ........................................................................................................................ 16
2.3
Glomac Berhad - Competitive Benchmarking ................................................................................................. 17
2.3.1
Glomac Berhad - Market Capitalization ...................................................................................................... 18
2.3.2
Glomac Berhad - Efficiency ....................................................................................................................... 19
2.3.3
Glomac Berhad - Turnover Inventory and Asset ...................................................................................... 20
2.3.4
Glomac Berhad - Liquidity ......................................................................................................................... 21
Glomac Berhad - Recent Developments ........................................................................................... 22
Glomac Berhad - SWOT Analysis ..................................................................................................... 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
Glomac Berhad - Company Statement.............................................................................................. 25
Glomac Berhad - History................................................................................................................... 27
Glomac Berhad - Key Employees ..................................................................................................... 29
Glomac Berhad - Key Employee Biographies................................................................................... 30
Glomac Berhad - Locations and Subsidiaries .................................................................................. 31

9.1
Glomac Berhad - Head Office ........................................................................................................................ 31
9.2
Glomac Berhad - Other Locations and Subsidiaries ....................................................................................... 31
10
Appendix ........................................................................................................................................... 33
10.1
Methodology .................................................................................................................................................. 33
10.2
Ratio Definitions ............................................................................................................................................ 33
10.3
Disclaimer ..................................................................................................................................................... 37
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List of Tables
Table 1: Glomac Berhad - Major Products and Services .................................................................................................. 7
Table 2: Glomac Berhad - Key Ratios - Annual ................................................................................................................ 8
Table 3: Glomac Berhad - Key Ratios - Interim .............................................................................................................. 10
Table 4: Glomac Berhad - Key Capital Market Indicators ............................................................................................... 10
Table 5: Glomac Berhad - History .................................................................................................................................. 27
Table 6: Glomac Berhad - Key Employees..................................................................................................................... 29
Table 7: Glomac Berhad - Key Employee Biographies ................................................................................................... 30
Table 8: Glomac Berhad - Subsidiaries .......................................................................................................................... 31
Table 9: Glomac Berhad - Locations .............................................................................................................................. 32
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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
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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 manages a range of car park systems in
Malaysia. The company has presence in Australia and Thailand, and is headquartered in Petaling Jaya, Malaysia.
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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 divisions; property development, construction, property investment and others.
The companys 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
companys 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 companys total revenues.
The companys 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 Permaisuri, 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 companys total revenues.
The property investment division of the company involves in investment 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 companys 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 companys total revenues.
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1.3
Glomac Berhad - Major Products and Services
Glomac is a real estate development 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
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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 20102014, 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
2012
2011
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
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Table 2: Glomac Berhad - Key Ratios - Annual

Key Ratios
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
0.14
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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
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
Current Ratio
Absolute
2.56
2.72
2.14
3.06
Quick Ratio
Absolute
1.48
1.69
1.36
1.87
Absolute
0.60
0.58
0.60
0.57
Net Debt to Equity
Absolute
0.84
0.81
0.97
0.80
Absolute
0.41
0.40
0.42
0.38
Cost Ratios
Liquidity Ratios
Leverage Ratios
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.
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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
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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$261 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
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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
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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
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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 companys quick
ratio declined to 1.36 in 2014 from the previous year's quick ratio of 1.66. In 2014, the companys debt ratio decreased to
0.31 from the previous year's debt ratio of 0.32.
Figure 5: Glomac Berhad - Solvency
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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
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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)
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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 Setia 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

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 disproportionately smaller, a bubble may not be displayed.
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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

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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 companys asset turnover in
2014 was 0.40, higher than the asset turnovers 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
asset turnovers of 0.29, 0.12 and 0.08 respectively.
Figure 9: Glomac Berhad - Turnover Inventory and Asset

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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 Berhad (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

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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.
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:
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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 companys 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, volatile input prices and shortage of skilled labor may impact the companys 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 companys 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 market.
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 - Weaknesses
Weaknesses - Limited financial leverage

Limited financial leverage or solvency position of the 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.
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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 countrys 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 20122017 (forecast period), The residential 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 June 2013 to US$ 716 per ton in December 2013. Furthermore, according to the
US Energy Information Administration, the average crude oil price too have 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 profitability 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 migrants. 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 between demand and supply. Shortage
of skilled and unskilled labor, especially at home market, may act as a road block to the companys future expansion plan
and ability to execute projects on time.
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5 Glomac Berhad - Company Statement

A statement by 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 Saujana Rawang; as well as the successful launch of key projects
within Lakeside Residences in Puchong. These results are testament to the Groups 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 2013s 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 share 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. Malaysias 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 growth in property transactions occurred during the first half
of the year due mainly to Bank Negara Malaysias (BNMs) 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 growth as the market slowly picked up due to the 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 during 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 proximity to future
MRT and LRT lines, Glomacs 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 Groups 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 Groups high unbilled sales and planned multiple launches from its strategic land banks.
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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 growth 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 2013 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 increasingly 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 Puchongs 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 Groups 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 the 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 serve. 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.
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6 Glomac Berhad - History

Table 5: Glomac Berhad - History
Year
Event type
Description
2014
Contracts/Agreements
The company entered into an agreement to acquire the Precious Quest Sdn Bhd.
2013
Asset Disposal
The company disposed an office building in Australia for AUD43.8 million.
2013
Acquisitions/Mergers/Takeovers The company 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
2012
Acquisitions/Mergers/Takeovers Glomac Berhad acquired Magical Sterling Sdn Bhd and Crest Dollars Sdn Bhd
2011
Acquisitions/Mergers/Takeovers Glomac acquired a property development company Berapit Pertiwi Sdn. Bhd.
2010
Acquisitions/Mergers/Takeovers The company acquired Berapit Properties Sdn. Bhd, a property development company.
2010
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
Glomac acquired Glomac Kristal Sdn Bhd and FDM Development Sdn Bhd for a total
cash consideration of MYR2.00 each respectively.
2009
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
of subdivided vacant freehold land located in the commercial zone of Mutiara
Damansara.
2008
The company's wholly owned subsidiary, Glomac Jaya Sdn Bhd, has completed the
acquisition of land from Setia Haruman Sdn Bhd.
2008
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.
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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
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
Glomac acquired 70.0% stake in FDA SDN BHD (FDA), a property development
company.
2006
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 company acquired GLOMAC AUSTRALIA PTY LTD (GAPL).
2005
Acquisitions/Mergers/Takeovers Glomac acquired Glomac City Sdn. Bhd.
2005
Acquisitions/Mergers/Takeovers The company acquired 49.0% equity in Glomac Jaya Sdn Bhd.
2005
Glomac acquired Glomac Leisure Sdn. Bhd which provides property development
services.
2005
The company's subsidiary, Prominent Excel Sdn Bhd, entered into a Joint Venture
Agreement with PT. Sejahtera Abadi Jaya to manage and operate the business of car
park management services in Indonesia.
2000
Stock Listings/IPO
The companys shares were listed on Bursa Malaysia Securities.
1988
Incorporation/Establishment
Glomac was founded by Datuk Richard Fong and Tan Sri Dato' FD Mansor
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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
Sujak
Non Executive Board
2000
56
Bin Haji
Director
Director
Richard Fong Loong Tuck Vice Chairman
Executive Board
Tan Sri MohamedMansor

Chairman
Bin Fateh Din
Executive Board
62
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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 companys 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 Developers 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
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.
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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
Glomac Damansara
Suria Residen
Kuala Lumpur
Cheras
Zip: 60000
Malaysia
Malaysia
Glomac Bina Sdn. Bhd.

No. 336, Block A, Kompleks Kelana Centre Point
Glomac Land Sdn Bhd
Jalan SS 7/19
Saujana Utama
Sungai Buloh
Selangor
Zip: 47301
Malaysia
Malaysia
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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
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
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
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
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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 best
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 SEC filings
The financial and operational data reported for the 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 + Amortization)
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
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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 dividends 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 measure used by owners of common shares 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
Gross Margin
Profitability Ratios are used 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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Glomac Berhad
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Profit Before Interest & Tax Margin shows the profitability of the company before interest
PBIT Margin (Profit Before
expense & taxation.
Interest & Tax)
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 / Shareholders 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 than 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 using 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 (property,
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
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 measure 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 gives an idea of a company'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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Glomac Berhad
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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 margin 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 higher 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 ineffective 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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Glomac Berhad
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Formula: Net Sales / Working Capital

Capital Employed
Turnover
Capital employed turnover ratio measures the efficiency of a company's use of its equity
in generating sales revenue to the 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
10.3 Disclaimer
All Rights Reserved
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,
electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, World Market
Intelligence.
The data and analysis within this report is driven by World Market Intelligence from its own primary and secondary
research of public and proprietary sources and does not necessarily represent the views of the company profiled.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the
findings, conclusions and recommendations that World Market Intelligence delivers will be based on information gathered
in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As
such World Market Intelligence can accept no liability whatever for actions taken based on any information that may
subsequently prove to be incorrect.
___________________________________________________________________________________________
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Glomac Berhad (GLOMAC) - Company Profile and SWOT Analysis

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Glomac Berhad (GLOMAC) - Company Profile and SWOT Analysis

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Glomac Berhad

Level 15, Menara Glomac, Kuala Lumpur,

Ticker Symbol, Stock Exchange

GLOMAC, Bursa Malaysia

Fiscal Year End

Revenue (in US$ million)

The company reported revenue of US$214 million

Diversified business operations

Limited financial leverage

The company recorded a return on equity (ROE) of

Strong liquidity position

Positive outlook for Malaysian

Shortage of skilled labor

Strategic growth initiatives

Volatile input prices

Glomac Berhad - Business Analysis .................................................................................................. 5

Glomac Berhad - Company Overview .............................................................................................................. 5

Glomac Berhad - Business Description ............................................................................................................ 6

Glomac Berhad - Major Products and Services ................................................................................................ 7

Glomac Berhad - Analysis of Key Performance Indicators ................................................................ 8

Glomac Berhad - Key Financial Performance Indicators ................................................................................. 11

Glomac Berhad - Revenue and Operating Profit ........................................................................................ 11

Glomac Berhad - Asset and Liabilities........................................................................................................ 12

Glomac Berhad - Net Debt vs. Gearing Ratio ............................................................................................. 13

Glomac Berhad - Operational Efficiency .................................................................................................... 14

Glomac Berhad - Solvency ........................................................................................................................ 15

Glomac Berhad - Valuation ........................................................................................................................ 16

Glomac Berhad - Competitive Benchmarking ................................................................................................. 17

Glomac Berhad - Market Capitalization ...................................................................................................... 18

Glomac Berhad - Efficiency ....................................................................................................................... 19

Glomac Berhad - Turnover Inventory and Asset ...................................................................................... 20

Glomac Berhad - Liquidity ......................................................................................................................... 21

Glomac Berhad - Recent Developments ........................................................................................... 22

Glomac Berhad - SWOT Analysis ..................................................................................................... 23

Glomac Berhad - SWOT Analysis - Overview................................................................................................. 23

Glomac Berhad - Strengths............................................................................................................................ 23

Glomac Berhad - Weaknesses....................................................................................................................... 23

Glomac Berhad - Opportunities ...................................................................................................................... 24

Glomac Berhad - Threats ............................................................................................................................... 24

Glomac Berhad - Company Statement.............................................................................................. 25

Glomac Berhad - History................................................................................................................... 27

Glomac Berhad - Key Employees ..................................................................................................... 29

Glomac Berhad - Key Employee Biographies................................................................................... 30

Glomac Berhad - Locations and Subsidiaries .................................................................................. 31

Glomac Berhad - Head Office ........................................................................................................................ 31

Glomac Berhad - Other Locations and Subsidiaries ....................................................................................... 31

Ratio Definitions ............................................................................................................................................ 33

Glomac Berhad - Business Analysis .................................................................................................. 5

Glomac Berhad - Company Overview .............................................................................................................. 5

Glomac Berhad - Business Description ............................................................................................................ 6

Glomac Berhad - Major Products and Services ................................................................................................ 7

Glomac Berhad - Analysis of Key Performance Indicators ................................................................ 8

Glomac Berhad - Key Financial Performance Indicators ................................................................................. 11

Glomac Berhad - Revenue and Operating Profit ........................................................................................ 11

Glomac Berhad - Asset and Liabilities........................................................................................................ 12

Glomac Berhad - Net Debt vs. Gearing Ratio ............................................................................................. 13

Glomac Berhad - Operational Efficiency .................................................................................................... 14

Glomac Berhad - Solvency ........................................................................................................................ 15

Glomac Berhad - Valuation ........................................................................................................................ 16

Glomac Berhad - Competitive Benchmarking ................................................................................................. 17

Glomac Berhad - Market Capitalization ...................................................................................................... 18

Glomac Berhad - Efficiency ....................................................................................................................... 19