PETALING JAYA: Crest Builder Holdings Bhd
is turning around nicely with its prospects supported by new job wins, a substantial outstanding order book, and positive take-up rate for its launched projects.
Rakuten Trade equity research vice-president Thong Pak Leng said the specialised construction and engineering contractor has secured four projects worth RM1.7bil, bringing the total contract value to RM2.28bil. Crest Builder has an outstanding order book of about RM1.93bil which will provide earnings visibility for the next three to four years.
“Management has guided that the tender book for the financial year ending Dec 31, 2024 (FY24) is expected to reach RM3bil, with three projects totalling RM934mil already secured,” he said in a recent report.
On Crest Builder’s property development segment, Thong said the Interpoint @ Bandar Bukit Tinggi project in Klang, Selangor, that was launched in mid-2023, has been well received with over 70% sales achieved so far.
“Current unbilled sales stand at about RM360mil. The project has a gross development value (GDV) of about RM640mil and is targeted for completion in the first quarter of 2027.
“Additionally, The Latitud8 project with a GDV of RM930mil, has been revived. Crest Builder has appointed a turnkey delivery partner who will finance and construct the project. Construction is currently underway and is targeted for completion by mid-2028,” he wrote.
Meanwhile, Tierra Crest, a 17-storey commercial development comprising a three-level retail podium and office towers with a net lettable area of 285,000sq ft, in Petaling Jaya, is generating rental income of RM7.8mil a year. Another of the company’s developments, The Crest, currently generating an annual rental income of RM4.8mil.
“Additionally, the company manages a concession for a 5,000-student capacity UiTM Tapah 2 campus with the Higher Education Ministry and Universiti Teknologi Mara. The concession generates annual income of RM43.5mil until January 2034,” Thong said.
He added that Crest Builder’s financial leverage is manageable with a net gearing ratio of 0.4 times as of FY23. The company has a dividend policy of 25% payout ratio from its net profit.
Rakuten Research has a “buy” call for Crest Builder with a target price of 75 sen a share.
