Crescendo Corp's 3Q net profit climbs to RM18m on higher property revenue

• On a quarterly basis, the group’s net profit came in higher from RM4.28 million for 2QFY2024, while revenue increased by 66.55% from RM61.15 million.

KUALA LUMPUR (Dec 28): Crescendo Corp Bhd saw its net profit for the third quarter ended Oct 31, 2023 (3QFY2024) rose by 270% to RM17.97 million, compared with RM4.86 million a year earlier, underpinned by higher properties sales compounded with high-margin industrial land sale.

Earnings per share increased to 6.43 sen from 1.74 sen, it showed in a Bursa Malaysia filing on Thursday.

Quarterly revenue surged by 98.56% to RM101.79 million from RM51.26 million for the previous year, on the back of higher revenue from the property development and manufacturing and trading segments.

For the full nine-month period ended Oct 31, 2023 (9MFY2024), the group’s net profit climbed by 25.90% to RM35.46 million, from RM28.16 million previously.

Revenue, on the other hand, increased by 25.39% to RM221.24 million, from RM176.44 million for 9MFY2023.

On a quarterly basis, the group’s net profit came in higher from RM4.28 million for 2QFY2024, while revenue increased by 66.55% from RM61.15 million.

Moving forward, the group said the property market will remain challenging in the short and medium term, due to rising cost of construction resulting from fluctuations in building material cost, as a result of currency depreciation and inflationary pressure.

“Nevertheless, Budget 2024 is expected to have a positive impact on the property sector, due to the government's efforts to boost homeownership.

“With the strong pipeline of incoming foreign direct investments to Johor, demand for industrial properties remains strong and is expected to grow in the coming years.

“The ongoing Johor Bahru-Singapore Rapid Transport System link project will serve as a catalyst to revitalise the Johor Bahru city centre development, and property developments within close vicinity to the terminal in Bukit Chagar will benefit,” it said.

Shares in Crescendo closed one sen or 0.45% lower at RM2.23 each, giving the group a market capitalisation of RM625.43 million.

Year to date, the stock has surged by 100.90%.

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