KUALA LUMPUR: Crescendo Corporation Bhd
's net profit for the first quarter ended April 30, 2024 (1Q) surged to RM289.03 million from RM13.20 million in the corresponding period a year ago, due to land sales for a data centre in Nusa Cemerlang Industrial Park in Johor.
Revenue also soared to a record high of RM527.27 million compared to RM58.33 million previously, largely from property development and construction operations, which contributed more than 90 per cent in 1Q, it said in a filing to Bursa Malaysia today.
The group said its property development and construction division remains the major contributor to the group's revenue and profit.
Crescendo is optimistic about the property market outlook, especially in Johor, for the next few years.
However, it remains cautious amidst the rapid changes in the market environment.
"Fluctuation in building materials cost driven by currency depreciation and inflationary pressure pose significant challenges for property developers," it said.
Additionally, with the influx of foreign direct investments to Johor, demands for industrial properties remain strong and are expected to grow in the coming years.
"The ongoing Johor Bahru-Singapore Rapid Transit System project will be a catalyst to revitalise the Johor Bahru City Centre development while property development in the vicinity of the terminal at Bukit Chagar will benefit," it added.
The group noted that the proposed Johor-Singapore Special Economic Zone in Johor is expected to foster stronger business ties and attract investments, boost the cross-border flow of goods and people and benefit the economies of both Malaysia and Singapore. - Bernama
