CRESCENDO THE ONE TO WATCH
As at 31 Jan 2013, Crescendo Corp Berhad has 2,975 acres of land in Johore out of which 2,181acres are in the Iskandar region. The company is in property development, construction, trading and manufacturing of building materials, education and the cultivation of oil palm.
For the quarter ended 31.10.13 and as at that date, the key statistics are as follows:
Revenue = RM78,010,000; EPS = 21.43 sen.
Total assets = RM622,868,000; total liabilities = RM242,052,000.
Current assets = RM334,321,000; Current liabilities = RM112,876,000.
Cash and bank balances = RM144,793,000; Loans and borrowings = RM 144,406,000.
From the above figures, it can be easily seen that the company has a solid balance sheet and little borrowings when compared to its total assets. Cash position is strong as well.
What is most commendable is the earnings for the quarter just ended. When you compared them to the corresponding quarter of the previous year's earnings of 5.20 sen, you find that earnings have grown by 312%! As for revenues, the improvement is only 47.47% because for the corresponding period of the previous year, revenue was at RM52,898,000.
The Iskandar region is presently a hive of activity and growing fast. Foreigners, especially Singaporeans are converging into the area. As a result, land value is expected to appreciate by leaps and bounds. Crescendo stands to benefit much from this scenario because of its fairly big land bank in Iskandar. The stock is bound to do well going forward. I am long on the stock; I intend to keep them for the long term.
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