Key highlights

• Revenue increased by 20.2% to RM1.57 billion
• PBT increased by 218.7% to RM114.2 million
• Outstanding order book of RM5.1 billion and unbilled property sales of RM1.9 billion provide near term earnings visibility
• Amidst a still challenging market, the Property Division saw an improvement in results arising from healthy property sales and the completion of certain phases in its Bandar Rimbayu, Seremban 2, Shah Alam 2, Taman Austin and Bandar Utama in Sandakan projects
• Cargo throughput at the Kuantan Port continues to be encouraging for the third consecutive quarter since Phase 1A of the New Deep Water Terminal became fully operational
• The recovery in crop production in the Group’s Malaysian plantation operations contributed to higher sales volume. Coupled with the absence of forex losses seen in the previous year’s corresponding quarter, the Plantations Division saw an improved financial performance

Petaling Jaya, 26 November 2019 - IJM Corporation Berhad (“IJM”) today released its financial results for the second quarter ended 30 September 2019. Group consolidated revenue stood at RM1,574.2 million, representing an increase of 20.2% from RM1,309.2 million reported in the same quarter a year ago following higher revenues contributed by the Group’s Construction, Property, Industry, Infrastructure and Plantations divisions. The Group recorded an increase of 218.7% in profit before tax (“PBT”) to RM114.2 million compared to RM35.8 million in the corresponding quarter last year following improved earnings from the Property, Industry, Plantation and Infrastructure divisions.

For the quarter, revenue of IJM’s Construction division increased by 12.1% to RM594.2 million following the completion of a few sectional packages of the West Coast Expressway during the quarter. Quarterly PBT of the division remained almost unchanged at RM38.5 million compared to the previous year’s corresponding quarter.

The Group’s Property division reported an increase in revenue by 47.1% to RM358.0 million compared to the same quarter in the previous year on the back of healthy sales recorded and the completion of certain phases of its townships in Bandar Rimbayu, Seremban 2, Shah Alam 2, Taman Austin in Johor and Bandar Utama in Sandakan during the current quarter. Pre-tax profit of the division increased by 69.7% to RM37.2 million compared to the same quarter last year due to improved revenue and the completion of these development projects during the quarter.

Revenue for the Industry division grew marginally by 3.4% to RM227.8 million compared to the same quarter last year following better sales achieved in the piles and quarrying sectors. The division saw an 11.5% increase in its pre-tax profits to RM17.9 million due to improved margins recorded by the piles and ready-mixed concrete sectors.

Revenue of the Group’s Plantation division saw an increase of 23.4% against the previous year’s corresponding quarter to RM172.9 million mainly due to higher CPO sales volume. The division reported a lower loss before tax of RM5.0 million this quarter compared to a loss of RM31.7 million in the same quarter last year mainly attributable to net foreign exchange gains of RM0.01 million in the current quarter compared to net foreign exchange losses of RM22.6 million in the same quarter last year following the strengthening of the Indonesian Rupiah against the US Dollar.

The Infrastructure division recorded an increase in revenue of 24.6% to RM203.1 million, mainly attributable to an expansion of cargo throughput handled by the Group’s Port concession which grew by 43% to 13 million tons compared to the corresponding quarter in the previous year. PBT of the division increased by 312.8% to RM35.2 million from RM8.5 million recorded in the corresponding quarter last year mainly due to higher contributions from the Group’s local toll and port concessions. The improvement in results was also due to lower net unrealised foreign exchange losses of RM4.9 million on the US Dollar denominated borrowings for the quarter compared to unrealised foreign exchange losses of RM20.3 million in the corresponding quarter of the preceding year

Mr Liew Hau Seng, Managing Director & CEO of IJM Corporation Berhad said: “Our construction business has a healthy mix of private and public projects. The outstanding construction order book of RM5.1 billion comprises civil infrastructure, high-rise buildings as well as IJM Land property development projects. This puts us on a strong footing while we are poised to meet the oncoming demands of the construction landscape as the country is still in need of quality contractors to execute its infrastructure ambitions.”

On the Group’s property division outlook, Mr Liew said: “The Group’s Property division expects to sustain its performance on the back of unbilled sales of around RM1.9 billion. The pipeline of launches over the second-half of the financial year include attractive launches of landed and high-rise projects across the country such as the Trehaus condo villa and The Terraces in Bukit Jambul, Penang, Starling double storey link houses in Bandar Rimbayu, Riana Dutamas (Parcel 2) in Segambut and Nasa City Phase 3 landed homes in Johor.

On Kuantan Port, Mr Liew added: “Phase 1A of the New Deep Water Terminal is fully operational and has been successfully berthing vessels, typically carrying iron ore and coal meant for the Alliance Steel plant at the Malaysia China Kuantan Industrial Park (MCKIP). The opportunities for Kuantan Port are sizeable and it will be crucial for us to facilitate the increasing FDI, predominantly from Chinese investors.”

The Group also has a fast maturing Plantation land bank profile to provide FFB production growth in the next few years.

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About IJM Corporation Berhad

IJM Corporation Berhad (“IJM”), formed in 1983, is today one of Malaysia’s leading construction groups and is listed on Bursa Malaysia KLCI. Its business activities encompass construction, property development, manufacturing and quarrying, infrastructure concessions and plantations.

Headquartered in Selangor, its operations are in 10 countries, with primary focus in Malaysia, India and Indonesia. The Group presently has a market capitalisation of around RM7.7 billion and as of November 2019, the Group employs around 4,500 employees and has total assets of RM24 billion.

The Group’s belief in a shared destiny with its employees remains pivotal to its success while its reputation for professionalism, performance and good governance is acknowledged by customers and investors alike from its numerous corporate and industry accolades. IJM is committed to ethical business conduct and subscribes to the principles of good corporate citizenship for sustainable growth and development. For more information, visit www.ijm.com

For more information, visit www.ijm.com

For further enquiries, please contact:

Ms. Mandy Chen, Corporate Communications, at mandychen@ijm.com or + 60 3 7985 8097

Mr. Shane Guha Thakurta, Investor Relations, at shane@ijm.com or + 60 3 7985 8041