Crescendo buoyed by record high sales and profit, should continue to trend higher

Crescendo Corporation Bhd surged to a 52-week high of RM1.73 on Sept 27 after its net profit for the second quarter ended July 31, 2024 (2QFY2025) surged more than 30-fold year-on-year (y-o-y). This was boosted by its data centre-linked land sales in Nusa Cemerlang Industrial Park, Johor.

In 2QFY25, Crescendo reported a jump in net profit to RM140.8 million from RM4.3 million previously, which was lifted mainly by land sales.

The company consistently paid dividends every year over the past 5 financial years. The payout ratio increased from 31.9% in FY20 to 88.8% in FY24. It means that the company is distributing more of its profits to shareholders.

Notably, its property development and construction operations recorded revenue of RM291.4 million and operating profit of RM182.5 million, contributing over 75% to the operations. As of Sept 30, the group reported committed property sales of RM260 million, including land sales at NCIP totalling RM115.9 million.

As of the end of July, Crescendo had a land bank of 2,513 acres across the southernmost state. It plans to launch several residential property projects next year.

These include 167 mid- to high-end landed residential units in Bandar Cemerlang and 57 shop office units in Desa Cemerlang, with a total gross development value of RM237 million.

Additionally, Crescendo aims to launch a serviced apartment project along Jalan Senyum near the RTS terminal in Bukit Chagar in the second half of FY2025, with a gross development value of RM1 billion.

Investors should remain positive on Crescendo’s future despite potential geopolitical and economic challenges as it banks on upcoming developments.