Property developer Crescendo rises to record high on land disposal

• Crescendo struck three land deals in November last year. This coincides with the rising momentum in the Iskandar Malaysia property market, spurred by the proposed revival of the Kuala Lumpur-Singapore high-speed rail (HSR) project and plans for the Johor-Singapore Special Economic Zone.

KUALA LUMPUR (April 5): Crescendo Corp Bhd's shares surged to a record high on Friday following the announcement of the Johor-based property developer’s latest land disposal plan.

The counter rose as much as 5.86% to RM3.25 during Friday’s morning session, before paring its gains to RM3.22 by noon break. At RM3.25, the group is valued at RM903.09 million.

Crescendo, through its wholly-owned subsidiary Panoramic Industrial Development Sdn Bhd, has sealed a deal with Microsoft Payments (Malaysia) Sdn Bhd for the sale of a vacant parcel of freehold land spanning 1.1 million sq feet in Pulai, Johor for RM132.47 million. The group expects to realise a net gain of RM80.83 million from this recent proposed land transaction.

Crescendo struck three land deals in November last year. This coincides with the rising momentum in the Iskandar Malaysia property market, spurred by the proposed revival of the Kuala Lumpur-Singapore high-speed rail (HSR) project and plans for the Johor-Singapore Special Economic Zone.

Furthermore, the completion of the JB-Singapore Rapid Transit System (RTS) by the end of 2026 is anticipated to be a significant game changer for Johor's property market. The relaxation of conditions for the Malaysia My Second Home programme, along with increasing rents in Singapore, has boosted the attractiveness of Johor properties. In light of these developments, Crescendo has opportunistically capitalised on market conditions by profiting from land disposals.

Crescendo has declared an interim dividend of five sen per share and another 13 sen as special dividend, after its earnings surged to a seven-year high on the back of rising home sales and high margin industrial land disposal.

Its net profit more than doubled to RM57.06 million for the financial year ended Jan 31, 2024 (FY2024) from RM24.53 million a year earlier, while revenue surged 58% to RM341.35 million from RM215.72 million.

Crescendo is 70%-owned by the founding Gooi brothers, who also have a controlling stake in plantation group Kim Loong Resources Bhd.

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