Key highlights:

• 2QFY25 revenue increased by 4.0% to RM1.52 billion
• Positive near term revenue outlook supported by outstanding Construction order book of RM6.4 billion, which includes accelerated turnaround industrial building projects, unbilled Property sales of RM2.0 billion, strong balance orders from the Industry division and steady Port bulk cargo volume
• Reported PBT year-to-date impacted by forex and fair value movements. Excluding these effects, the Group’s core PBT 6M FY2025 increased by 8.1% to RM393 million
• Strong cash reserves and healthy net gearing ratio of 0.27 times provide resilience and capacity to undertake large scale projects
• Interim dividend of 2 sen declared

PETALING JAYA, 27 November 2024 – IJM Corporation Berhad (“IJM” or “The Group”) today released its financial results for the second quarter ended 30 September 2024 (Q2 FY2025).

Group revenue for Q2 FY2025 increased 4.0% to RM1,516.3 million from RM1,458.4 million reported in the corresponding quarter last year.

The Group’s pre-tax profit, however, decreased by 20.3% to RM152.2 million in the quarter (Q2 FY2024: RM191.0 million) mainly due to higher unrealised foreign exchange losses of RM68.5 million in 2QFY2025 compared to the unrealised foreign exchange losses of RM35.0 million recorded in 2QFY2024. In addition, the Group also recognised a fair value gain of RM1.3 million on WCE Holdings Berhad (“WCEHB”) warrants in 2QFY25. After excluding the effects of foreign exchange and fair value movements, the Group’s core pre-tax profit for 6M FY2025 increased by 8.1% to RM393 million.

The Construction Division revenue increased by 49.8% to RM623.3 million, driven by higher construction activities in tandem with its higher order book. The Division’s PBT increased by 87.7% to RM28.7 million compared to the corresponding quarter last year. A stronger near- term performance is anticipated as more industrial building projects pick up pace as they progress beyond the initial stages of construction. These projects typically have a shorter execution period of two years, compared to three years for commercial buildings.

The Group’s Property Division reported revenue of RM405.2 million in Q2 FY2025, 12.6% lower than RM463.7 million registered in the corresponding quarter last year, mainly due to the sale of two parcels of industrial land in Bandar Rimbayu in the previous financial periods. Correspondingly, pre-tax profits for Q2 FY2024 decreased by 60.4% to RM30.2 million compared to RM76.2 million in the same quarter last year, mainly due to higher unrealised foreign exchange losses of RM47.6 million. In addition, profit was higher in the previous periods due to recognition of gains from the disposal of the two parcels of industrial land mentioned above.

The Group’s Industry Division saw a decrease in revenue of 15.6% to RM266.7 million in Q2 FY2025, due to lower tonnage of piles and ready mixed concrete products delivered. The Division, however, recorded a PBT of RM47.9 million in the quarter, 7.2% higher compared to RM44.7 million in Q2FY24, driven by higher operating efficiencies achieved.

Revenue for the Infrastructure Division’s current quarter decreased by 11.5% to RM214.4 million (Q2 FY2024: RM242.4 million), mainly due to lower traffic volumes in certain local and overseas tollways and lower cargo throughput. Pre-tax profits for Q2FY2025 decreased,

mainly due to the absence of compensation income post-restructuring and a higher share of losses in our Argentinian associate.

Prospects for the Near Term

This week, IJM proposed to acquire a 50% equity stake in JRL Group Holdings Ltd (“JRL”) for

£50 million (approximately RM283 million). This strategic investment strengthens IJM's presence in the UK construction sector and allows IJM to leverage synergies between its existing UK property pipeline and JRL’s construction execution capabilities. With a sizeable order book of £1.5 billion (approximately RM8.5 billion), JRL complements IJM’s outstanding RM6.4 billion order book, enhancing the Group's ability to deliver high-value projects.

On the Group’s prospects, Group CEO & Managing Director of IJM, Datuk Lee Chun Fai explained: “With a robust construction order book of RM6.4 billion and growing opportunities in industrial projects, we are well-positioned to sustain our growth momentum, against the backdrop of a supportive macroeconomy. Our focus remains on executing key projects efficiently while exploring strategic investments like the JRL Group partnership to expand our global footprint. IJM’s balance sheet, with a net gearing of 0.27 times, also positions the Group to undertake large scale projects and strategic investments.”

The Group’s Construction order book includes RM2.1 billion in new projects secured this financial year, such as the United Logistics Hub in Shah Alam, a semiconductor facility and an E&E facility in Penang, the Iskandar Puteri Data Centre, and a data centre joint venture with Woh Hup Malaysia in Johor.

The Property Division continues to focus on offering compelling products aligned with market preferences across various price point segments. With unbilled sales of approximately RM2.0 billion and ongoing efforts to introduce attractive packages with the right product pricing, the division is expected to deliver a satisfactory performance for the current financial year.

The performance of the Industry Division is expected to be supported by robust construction activities both domestically and regionally, driven by its strong orders in hand.

Toll operations are expected to continue providing the Group with recurrent revenue streams from its existing mature concessions, while its newer highways remain in the gestation period before reaching maturity. The outlook for the Port operations remains positive, on the back of improved cargo volumes.