$CRESNDO / 6718 (CRESCENDO CORPORATION BERHAD) riding high on data centre play (The Edge Malaysia, April 8, 2024)

Key points:

Four land disposals in 5 months - all for data centre related activities.

Crescendo has sold more than 135 acres, bringing in sales proceeds of more than RM675m.

Crescendo seems to be the dark horse as the data centre and logistics play picks up in Johor.

Crescendo has also acquired land to take advantage of the Johor-Singapore RTS.


Comments:

- Crescendo still has remaining landbank of about 75 acres at NCIP. Worth RM392m at RM120 psf.

- Plans to launch 1,200 units of serviced apartment near Johor-Singapore RTS with total GDV of RM1b in 2HFY25. GDC (including land cost) is RM535m. High profit margin.

- Valuation remains undemanding at only 0.4x RNAV.