KUALA LUMPUR: Crescendo Corporation Bhd's net profit surged fourfold to RM102.99 million in the third quarter ended Oct 31, 2024 (Q3FY25) from RM17.97 million in the same period last year.
This was due to the data centre land sales in Nusa Cemerlang Industrial Park (NCIP).
Revenue for the quarter rose 127 per cent to RM231.24 million versus RM101.79 million in Q3FY24.
For the nine-month period (9MFY25), the company's net profit jumped to RM532.86 million from RM35.46 million previously.
It logged a higher revenue of RM1.08 billion from RM221.24 million a year ago.
In a filing with Bursa Malaysia, Crescendo holds an optimistic outlook for the property market, especially in Johor in the next few years.
"With the influx of foreign direct investments to Johor, demands for industrial properties remain strong and are expected to grow in the coming years.
"The ongoing Johor Bahru-Singapore Rapid Transit System Link project will serve as a catalyst to revitalise Johor Bahru City Centre development," it said.
It added that the proposed Johor-Singapore special economic zone aims to strengthen business ties, enhance bilateral relations, boost cross-border flow of goods and people.
The collaboration is expected to improve the business ecosystems of both nations and attract new investments.
"The group will continue to monitor the market situation and the impact from the uncertainty on global economic outlook which will lead to fluctuating material costs and currency volatility.
"The minimum wages adjustments and subsidy rationalisation are expected to have an impact on our cost."
Crescendo said it will adopt a prudent approach by leveraging on its strategic land bank to develop properties that meet market needs.
"We believe the demand for landed properties in strategic growth area with good infrastructure and connectivity will continue to improve," it added.
Earlier this month, Crescendo disposed of a 7.43-hectare five plots of vacant land in Johor Baru to Data Cloud Innovation Sdn Bhd for the development of data centres in Johor.
Its subsidiary Panoramic Industrial Development Sdn Bhd (PID) inked a deal with Data Cloud to dispose of the land for RM120.061 million.
Crescendo said the plots of land form part of NCIP, a light and medium industrial park currently developed by PID.
Crescendo's share price closed 0.67 per cent or one sen higher to RM1.51 on Friday with a market value of RM1.27 billion.