KUALA LUMPUR (Dec 27): Crescendo Corporation Bhd (KL:CRESNDO) reported a more than fivefold increase in net profit for its third quarter, driven by data centre land sales in Nusa Cemerlang Industrial Park (NCIP) in Iskandar Puteri, Johor.

The Johor-based property developer recorded a net profit of RM103 million for the quarter ended Oct 31, 2024 (3QFY2025), compared to RM18 million a year earlier, according to a bourse filing on Friday.

This translated to earnings per share of 12.28 sen, up from 6.43 sen. No dividend was proposed for the quarter.

Quarterly revenue surged 127% to RM231.2 million from RM101.8 million in 3QFY2024. The group's property development and construction operations contributed RM202.7 million in revenue and RM132 million in operating profit, accounting for over 85% and 89% of the total revenue and operating profit, respectively.

For the first nine months of the financial year, Crescendo’s cumulative net profit soared 15 times year-on-year to RM532.86 million from RM35.46 million, while revenue jumped 388% to RM1.08 billion from RM221.2 million.

As of Oct 31, the group’s land bank stood at 2,488 acres, with committed property sales amounting to RM288 million as of Dec 23, including RM120 million from land sales at NCIP.

Looking ahead, Crescendo said it will continue to monitor market conditions, including fluctuating material costs, currency volatility, and the impact of minimum wage adjustments and subsidy rationalisation.

It plans to adopt a prudent approach by utilising its strategic land bank to develop properties aligned with market demand, focusing on landed properties in growth areas with robust infrastructure.

“The board is positive and confident about the prospects of the group’s upcoming new property developments and anticipates operating at optimum capacity in the coming years,” it added.

In a separate filing, Crescendo said its units have proposed to dispose of five plots of land in Pontian, Johor for a total of RM56.5 million in cash.

Its 60%-owned indirect subsidiary, Unibase Concrete Industries Sdn Bhd (UCI), has entered into an agreement with Brillantek Sdn Bhd for the sale of two plots of land, measuring a total of 6.37 hectares, for RM18.9 million.

Meanwhile, Unibase Pre-Cast Sdn Bhd, its indirectly 50.4%-owned unit, has entered into a separate deal with Korsahavet Sdn Bhd for the sale of three plots of land, measuring a total of 12.7 hectares, for RM37.7 million.

The group expects to record a consolidated gain after taxation of RM26.78 million from the disposals.

Crescendo said the sales proceeds from the UCI land disposal will be utilised for capital expenditure on UCI’s new plant, working capital, and/or to settle UCI’s outstanding term loan.

The sales proceeds from UPC, meanwhile, will be used for the acquisition cost of a new plant to relocate UPC’s operations and for working capital.

Both land disposals are expected to be completed by the first half of 2025, said Crescendo.

Shares of Crescendo closed one sen or 0.7% higher at RM1.51 on Friday, giving the group a market capitalisation of RM1.27 billion.