Tuesday, January 03, 2012

Cresendo Corp Bhd (Stock Code 6718)

Iskandar Malaysia (IM) is accessible by air, land, rails and sea. It is flanked by three important ports. Strategically located, it has all the competitive edges of being developed into a metropolis. IM is twice the size of Hong Kong, and when compared to Singapore, it is thrice the size of the island.
There is now a hive of activity at IM. The Government has allocated RM6.83 billion to develop it. Newcastle Medical University has already started operation, and Legoland will likely open its doors for business towards 2012. Click here to read more.

Crescendo Corp Bhd (CCB) founded in 1989 is a leader in the property development sector in IM. According to its Chairman and CEO Gooi Seong Lim, its Cemerlang Township (562.51 ha) will keep the company busy in the next 12 to 15 years. The key statistics of the company are:

Share Issued: 175,114,000
Par Value RM1
EPS, trailing 9 months: 26.92; diluted 19.33
EPS, latest qtr: 12.48; diluted 8.95
Current Assets: 287,202,000 (Cash 67,514,000)
Current Liabilities: 84,303,000
Total Assets: 776,956,000
Total Liabilities: 233,010,000
NTA: 3.02
Borrowings: 138,704,000
Dividends paid during the 9 months ended 31.10.11: 2 sen less tax paid on 17.2.11; 5 sen less tax paid on 26.8.11, and now it has declared a dividend of 3 sen less tax.

The Business of Crescendo is centered in IM which is a high-growth area in Malaysia. The company has been well-managed. I believe it should have high-growth as well. The stock is last traded at RM1.60. In my opinion, this a property gem.

As usual, buy at your own risk. Happy New Year!

Some extracts from Bursa Announcements:
B1 Review of the performance of the company and its principal subsidiaries The Group recorded a significant increase in revenue and profit before tax ("PBT") to RM219.8 million and RM64.9 million respectively for the nine months of the financial year ending 31 January 2012 as compared to RM158.5 million and RM34.6 million respectively recorded for the previous corresponding financial period in the last financial year.
The 39% increase in revenue is mainly contributed from higher sales in industrial properties. The 87% increase in PBT is mainly contributed by higher sales and improved margin from industrial properties.
B2 Comparison of profit before tax for the quarter reported on with the immediate preceding quarter The PBT for the current financial quarter is RM30.4 million, which represent an increase of RM9.9 million or 48% as compared to the preceding financial quarter ended 31 July 2011. The significant increase in PBT is mainly contributed by higher sales in industrial properties.
B3 Prospects For the financial year 2012, the market conditions are volatile in view of the European sovereign debt concern and a recurrence of the global recession. The Group will continue to focus, with the encouraging locked-in sales, on the development of industrial properties at Nusa Cemerlang Industrial Park ("NCIP") located in Nusajaya in the financial year 2012.
The Board expects the Group's performance to remain good for the financial year ending 31 January 2012.