PETALING JAYA: Land sales to data centre developers lifted Crescendo Corp Bhd
’s first-quarter revenue to a record-high of RM527mil.
In a filing with Bursa Malaysia, the property developer noted its revenue for the first quarter ended April 30, 2024 (1Q25) surged by about nine-fold year-on-year (y-o-y), from just RM58.3mil a year earlier.
More than 90% of the revenue was contributed by the data centre land sales in Nusa Cemerlang Industrial Park (NCIP).
Land sales at NCIP alone represent 69% or RM335mil of Crescendo’s committed property sales of RM486mil as at June 25, 2024. So far, out of the RM335mil committed sales at NCIP, about RM219mil has already been completed.
Following the strong topline, Crescendo’s net profit surged by almost 22-fold y-o-y to RM289mil in 1Q25, raising the earnings per share to 103.44 sen.
The company, however, did not declare a dividend for the quarter under review.
Segmental-wise, the property development and construction division remains as the major contributor to Crescendo’s revenue and profit.
The property development segment’s record-high revenue and operating profit of RM510mil and RM383mil in 1Q25, respectively, were mainly due to data centre land sales.
As for its manufacturing and trading segment, the increase in revenue was mainly contributed by higher sales demand in concrete products.
Looking ahead for the rest of the financial year 2025 (FY25), Crescendo stated it expects to have an “exceptional year”.
“Barring major geopolitical uncertainties and economic headwinds, the board is positive and confident of the prospects of the group’s upcoming new property development and anticipates that the group will be operating at optimum capacity in the coming years.
“We are optimistic about the property market outlook, especially in Johor, in the next few years.”
However, Crescendo remains cautious amid the rapid changes in the market environment. These include fluctuation in building materials cost driven by currency depreciation and inflationary pressure.
“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 Rapid Train System (RTS) project will serve as a catalyst to revitalise Johor Bahru City Centre development and the property development in the vicinity of the terminal at Bukit Chagar will benefit,” it said.Crescendo plans to launch a serviced apartment project situated along Jalan Senyum in close proximity to the RTS terminal at Bukit Chagar in the second half of FY25.
