Crescendo Q3 net profit falls 62%

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KUALA LUMPUR (Dec 30): Property developer Crescendo Corp Bhd saw its net profit fall 61.8% to RM18.07 million for the third financial quarter ended Oct 31, 2015 (3QFY15), from RM47.36 million a year ago.

In its filing with Bursa Malaysia today, Crescendo attributed the weaker performance to the absence of fair value gains of investment properties, which were recognised in 3QFY14.

Revenue also slipped 6.9% to RM72.6 million compared with RM78.01 million in 3QFY14, mainly due to lower sales in industrial properties. Earnings per share (EPS) for 3QFY15 fell to 7.94 sen from 21.43 sen a year ago.

For the nine-month period (9MFY15), Crescendo recorded a net profit of RM85.29 million, 6.5% lower than RM91.24 million in 9MFY14. Revenue also dropped 18% to RM193.29 million from RM235.71 million a year ago.

EPS for 9MFY15 stood at 37.47 sen, versus 44.18 sen in 9MFY14.

Crescendo said moving forward, it will continue to focus on development of industrial, residential and commercial properties, despite challenging market conditions.

“The market condition is expected to remain challenging in the near term in view of the various cooling measures implemented by the government,” Crescendo’s board said.

Nevertheless, it expects to perform better in 4QFY15 on the back of RM126 million unrecognised revenue from the total committed property sales as at Oct 31 and new sales committed after Oct 31.

Crescendo shares closed 2.44% or six sen lower at RM2.40 today, giving it a market capitalisation of RM545.93 million.