$CRESNDO / 6718 (CRESCENDO CORPORATION BERHAD): Quarterly Profit Surpasses the Combined Profits of the Past 7 Financial Years

CRESNDO has achieved new highs in both revenue and profit in Q1FY25, marking the best quarterly performance ever. The profit for this quarter has surpassed the total profit of the past 7 financial years combined. Here are some key takeaways from the latest quarterly report:

1. Revenue Surge: Revenue soared to RM527.3 million, marking an 804% year-on-year increase. This quarterly revenue also exceeded the entire FY24 revenue of RM341.3 million. The significant rise in revenue is mainly attributed to data center land sales in Nusa Cemerlang Industrial Park, which contributed over 90% of the revenue this quarter.

2. Profit Before Tax: PBT increased by 1,934% year-on-year to RM382.6 million, driven by the revenue increase. The higher PBT relative to revenue is due to minimal expenses associated with the land sales.

3. Profit After Tax: PAT grew by 2,089% year-on-year to RM289 million, surpassing the combined PAT of the past seven financial years.

4. Cash Position: The company’s cash position strengthened, rising to RM271.8 million from RM54.9 million year-on-year, a 395% increase.

5. Net Debt Position: Despite the improvements, the company remains in a net debt position of RM5.1 million, down from RM294 million in January 2023.

6. Dividend Payout: The company’s net debt status is primarily due to high dividend payouts in FY24 following the land sales.

7. Free Cash Flow: The company generated positive free cash flow this quarter.

8. Landbank: As of April 30, the company holds a landbank of 2,529 acres, primarily in Johor.

9. Upcoming Projects: Within the next year, the company plans to launch 167 units of mid to high-end landed residential properties at Bandar Cemerlang and 57 units of shop offices at Desa Cemerlang, with a total GDV of RM237 million.

10. Future Developments: The company also plans to launch a serviced apartment project along Jalan Senyum near the RTS terminal at Bukit Chagar in the second half of FY2025. This project will include approximately 1,200 units with a GDV of RM1 billion.

11. Industrial Park Development: CRESNDO intends to start the main infrastructure work for the industrial park at Bandar Cemerlang in FY2025, with the first phase of sales expected within the next three years.

12. Management Outlook: The management is optimistic about the company’s upcoming property developments and expects optimal operation in the coming years. With committed property sales of RM486 million as of June 25, 2024, including RM335 million in land sales at NCIP (with RM219 million completed to date), the management anticipates an exceptional year in FY2025.