KUALA LUMPUR (June 27): Land sales in Pulai, Johor, totaling RM219 million to data centre operators have boosted Crescendo Corp Bhd’s net profit to a record high for the first quarter ended April 30, 2024 (1QFY2025).

The property developer’s quarterly net profit jumped by 22 times to RM289.03 million from RM13.2 million a year earlier. Earnings per share ballooned to 103.44 sen from 4.73 sen. Quarterly revenue rocketed to RM527.28 million from RM58.34 million driven by its property development and construction division.  

This marks the highest ever earnings for the Johor-based property developer since its listing in 1997, driven by its land disposals for data-centre related activities.

“Based on the committed property sales of RM486 million as at June 25, 2024, including land sales at Nusa Cemerlang Industrial Park of RM335 million out of which RM219 million has already been completed to date, the board expects the group to have an exceptional year in FY2025,” said Crescendo.

Crescendo did not declare any dividends for the quarter under review.

Just two weeks ago, the company announced its sixth land sale within seven months in Pulai to Digital Halo Pte Ltd, a Singapore-based data centre firm, for RM115.88 million in cash.

Looking ahead, the company said the demand for industrial properties in Johor is expected to grow in the coming years due to the influx of foreign direct investments to the southern state.

“The ongoing RTS (Johor Bahru-Singapore Rapid Transit System) 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.

“The proposed Johor-Singapore special economic zone (JS-SEZ) in Johor is expected to foster stronger business ties and attract investments, boost cross-border flow of goods and people and benefit the economies of both Malaysia and Singapore. The extent of economic benefits the project may have on Johor will be clearer once the details of JS-SEZ are announced by the authorities,” it said.

“The group will continue to monitor the market situation and adopt a prudent and cautious approach by leveraging on its strategic land bank to develop properties that meet market needs. We believe the demand for landed properties in strategic growth areas with good infrastructure and connectivity will improve further. The group continues to adapt its plans, strategies, product designs, and timing of new launches as part of its strategic response,” Crescendo added.

Shares of Crescendo gained two sen to close at RM3.70 on Thursday, giving it a market capitalisation of RM1.04 billion. Year to date, the counter has gained over 51%.

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