Petaling Jaya: Crescendo Corp Bhd expects industrial property development to be its main revenue contributor for the year ending Jan 31, 2008 (FY08).
Managing Director Gooi Seong Lim said the company's main focus this year would be on the Nusa Cemerlang Industrial Park (NCIP) Project, which forms part of Bandar Nusajaya in Johor.
"Industrial Property developement would be our main growth driver for FY08."
"We anticipate the contribution from this segment would exceed 50% of group revenue for FY08 compared with 16% last year," he said, adding that its residential and commercial property segment contributed about 60% last fiscal year.
For FY07, Crescendo posted revenue and net profit of RM75.3 mil and RM19.1 mil respectively.
Its industrial property operation recorded revenue of RM12 mil while residential and commercial property operation posted RM40 mil.
Due to the current overhang situation in residential properties, Crescendo would focus on its NCIP project, Gooi said after the company AGM yesterday.
Crescendo has completed earthworks and the main infrastructure of the 500-acre NCIP, located within the Iskandar Development Region (IDR). It is working on Phase 1A, which consists of 46 factories, ranging from 6,000 to 50,000 sq ft in built-up area.
The 46 units would be completed by first quarter next year, Gooi said, adding that this phase had recorded 25% take-up rate.
"The whole project should take us about eight to 10 years to complete, depending on the demand," he said.
With a gross development value (GDV) of close to RM1bil NCIP would be developed in three major phases.
Crescendo's other projetcs within IDR include the 222-acre waterfront mixed residential and commercial development project. Of the 1,390 acres under its Bandar Cemerlang development, 890 acres sit inside IDR.
Gooi said the company would invest about RM15mil for the main infrastructure works for Bandar Cemerlang.
On the waterfront project, he said the earthwork and work on the main infrastructure had started, but the main building works would commence in two to three years when the housing market picked up again.
Crescendo currently has total land bank of 3,300 acres in Johor, of which 1.975 acres are within IDR and would last the group for the next 20 to 30 years.
For the first quarter ended April 30, the company registered net profit of RM4.1mil on revenue of RM22.3mil. Earnings per share was 2.85 sen.
Starbiz, 31 July 2007