KUALA LUMPUR: It is projected that Crest Builder Holdings Bhd would turn a profit in the fiscal year 2024 (FY24), thanks to a number of active projects and strong real estate sales, according to Rakuten Trade Sdn Bhd.
The firm's equity research vice president Thong Pak Leng said Crest Builder is also expected to register core net earnings of RM10.2 million and RM12.6 million for FY24 and FY25, respectively.
"Crest Builder has secured four projects worth RM1.7 billion, bringing the total contract value to RM2.28 billion.
"At present, the company has an outstanding orderbook of about RM1.93 billion, which will provide earnings visibility for the next three to four years.
"Management has guided that the tender book for FY24 is expected to reach approximately RM3 billion, with three projects totaling RM934 million already secured," he said in a research note today.
As such, Thong said Rakuten Trade has kept a "buy" call on Crest Builder, with a target price of 75 sen.
He noted that this is premised on the solid remaining orderbook of RM1.9 billion and strong sales recorded from its property development project.
Meanwhile, Thong said Crest Builder's Interpoint @ Bandar Bukit Tinggi, Klang, which was launched in mid-2023, has been well received, with over 70 per cent of sales achieved so far.
He said the current unbilled sales stand at about RM360 million, while the project has a gross development value (GDV) of approximately RM640 million and is targeted for completion in the first quarter of 2027 (1Q27).
Additionally, Thong said The Latitud8, with a GDV of RM930 million, has been revived, with construction currently underway and targeted for completion by mid-2028.
He noted that the company has appointed a turnkey delivery partner who will finance and construct the project.
Crest Builder also owns two investment properties, namely The Crest and Tierra Crest.
Thong said The Crest, located in Section 19, Petaling Jaya, is a 16-storey office tower with a net lettable area (NLA) of 144.8k sqft and 1,500 car parks and currently, it generates an annual rental income of RM4.8 million.
He added that Tierra Crest, situated in Kelana Jaya, is a 17-storey commercial development comprising a three-level retail podium and office towers with a net lettable area of 285,000 sq ft, generating rental income of RM7.8 million per annum.
Thong also noted that Crest Builder manages a concession for a 5,000-student capacity UiTM Tapah 2 campus with the Ministry of Higher Education and Universiti Teknologi Mara (UiTM).
He said the concession generates an annual income of RM43.5 million until January 2034.