Crescendo’s 1Q profit surges on one-off Bandar Cemerlang data centre land sale

PETALING JAYA (June 30): Crescendo Corp Bhd has reported a sharp jump in earnings for its first quarter ended April 30, 2026 (1QFY2027), as the recognition of a data centre land sale at Bandar Cemerlang Industrial Park (BCIP), Johor, drove revenue and profit before tax sharply higher year-on-year.

For the quarter, group revenue rose to RM317.87 million from RM65.06 million a year earlier, while profit before tax surged to RM182.03 million from RM10.63 million. Profit attributable to owners of the company increased to RM135.74 million, compared with RM5.21 million in the preceding year’s corresponding quarter.

Crescendo said the group’s revenue and profit before tax for the current financial quarter were mainly contributed by the recognition of a data centre land sale in BCIP. The property development and construction division remained the major contributor, recording revenue of RM290.17 million and operating profit of RM174.62 million for the quarter.

Basic earnings per share jumped to 16.07 sen for 1QFY2027, from 0.62 sen previously. The group did not declare any dividend for the quarter; a special single-tier dividend of 6 sen per share in respect of FY2026 was paid on February 10.

While the land sale significantly boosted quarterly earnings, Crescendo’s filing indicates that revenue and operating profit in the manufacturing and trading segment decreased due to lower precast activities following the relocation of the factory.

The property investment segment recorded higher revenue and operating profit, mainly from the addition of rented units, and the services segment saw higher management fees and international school contributions.

As at April 30, total assets stood at RM2.13 billion, up from RM1.93 billion as at Jan 31. Equity attributable to owners of the company rose to RM1.55 billion, with net assets per share increasing to RM1.83 from RM1.67.

Group loans and borrowings totalled RM206.60 million at end-April, compared with RM182.12 million a year earlier, with the increase mainly due to the drawdown of revolving credit. The weighted average interest rate on loans and borrowings ranged from 3.7% to 7.6%, and approximately 48% of the facilities were at fixed rates.

The group reported net cash used in operating activities of RM59.99 million, net cash from investing activities of RM43.65 million and net cash used in financing activities of RM16.15 million for the quarter. The effective tax rate for the quarter was slightly higher than the 24% statutory income tax rate, mainly due to certain non-tax-deductible expenses.

Crescendo said that, as at April 30, the group’s landbank, including land under development, totalled about 2,426 acres across Bandar Cemerlang, BCIP, Nusa Cemerlang Industrial Park and other locations in Johor. The filing notes that this landbank figure represents gross land, with certain net acreage already sold via conditional sale and purchase agreements.

In its outlook, the board highlighted the Johor–Singapore Special Economic Zone (JS-SEZ) and key infrastructure developments such as the Johor Bahru–Singapore Rapid Transit System (RTS) Link as factors supporting optimism about the property market in Johor.

Crescendo said the relatively low overnight policy rate is expected to create a favourable environment for homebuyers and investors, and that government initiatives and foreign direct investment inflows into Johor are expected to maintain healthy demand for industrial properties.

At the same time, the group cautioned that the operating environment is expected to remain challenging due to geopolitical tensions, global trade and economic uncertainties, and rising construction costs.

Based on locked-in sales and land disposals at Nusa Cemerlang Industrial Park and BCIP, the board said it expects the group to perform “reasonably well” in FY2027, notwithstanding uncertainties arising from the ongoing US–Iran conflict.

The group plans to launch 167 landed residential units at Bandar Cemerlang, 18 semi-detached factories at BCIP and 24 RMMJ Type B homes at Taman Dato Chellam over the next year, with a gross development value of about RM252 million.

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