PETALING JAYA, 22 September 2020 – IJM Corporation Berhad (“IJM” or the “Group”) held its 36^th Annual General Meeting (“AGM”) at the Group’s headquarters in Petaling Jaya today. The meeting was conducted virtually in adhering to Covid-19 standard operating procedures (SOP) and in embracing the new norms. Meeting proceedings were broadcasted to shareholders via remote participation and electronic voting on a designated online meeting platform.

All of the resolutions on the agenda were approved at the AGM and the company’s audited financial statements for the financial year ended 31 March 2020 (“FY2020”) were adopted. Details of the voting results and questions received, as well as responses provided during the meeting has been posted on IJM’s corporate website at www.ijm.com.

During a corporate presentation to shareholders at the AGM, Mr Liew Hau Seng, CEO & Managing Director of IJM Corporation Berhad reviewed the Group’s FY2020 performance and prospects across its five business Divisions – Construction, Property, Industry, Infrastructure and Plantation.

Key highlights:

• In FY2020, the Group operated against a backdrop marked by several significant events which have profoundly changed the global economic landscape – geopolitical tensions, volatility in financial markets and the unprecedented Covid-19 pandemic. Meanwhile, the domestic economy was affected by weaker external demand, changes in the political landscape, a general decline in corporate profitability and continued weakness in the property market. Public sector investments were particularly weak mainly due to lower capital spending and the review of large infrastructure projects.
• The Group expects improved financial performance in subsequent quarters of the financial year 2021, as business activities across its five Divisions are currently fully operational with new Covid-19 health and safety SOPs in place.
• The Group has also implemented appropriate mitigation measures, focusing on cost containment, prudent capital management and cash preservation. The Group’s resilience is supported by its healthy balance sheet with a net gearing of 0.48 times and gross cash balance of RM2.1 billion as at 30 June 2020. 

• Construction Division:

• With a sizeable order book in hand, the Division will be focusing on the execution and timely completion of its current projects. Its healthy outstanding construction order book of RM5.5 billion, comprising a good mix of building, infrastructure and road projects from both the private and public sectors, will provide earnings visibility over the next two to three years. Recent job wins such as the retail mall and Penang Waterfront Convention Centre (RM865 million) in The Light City, Penang, as well as TRX Residences (RM530 million) at Tun Razak Exchange (TRX) are high quality projects that allow IJM to demonstrate its delivery capabilities.
• Reinforcing its track record as a builder of prestigious iconic buildings in the city centre, the Group is currently executing the Bukit Bintang City Centre retail mall; UOB Tower 2 at Jalan Raja Laut; Affin Bank and HSBC office towers at TRX for well-established clients.
• Ongoing infrastructure projects include West Coast Expressway (WCE) and the MRT 2 Jinjang to Jalan Ipoh line.
• In India, under the Group’s build-operate-transfer highway concession projects, the 20 km Dewas Bypass tollway was completed and commenced tolling since January 2020, while the 109 km Vijayapura-Solapur tollway has achieved a 40% construction progress milestone.

• Property Division

• The Division recorded RM320 million in sales in the first quarter of FY2021. Post-MCO, it has seen an encouraging take-up of its mid-range properties priced between RM400,000 and RM900,000. Phase 1 and 2 of IJM Land’s recently launched Starling in Bandar Rimbayu, consisting of 273 units in total with a combined GDV of RM189.4 million, was fully booked within a day of their respective launches.
• IJM Land is adapting its strategies to respond to the challenging financing landscape arising from the Covid-19 pandemic. Launched in August 2020, IJM Land’s 'Now You Can' homeownership campaign features low-installment packages, interest subsidies and various incentives to prospective homebuyers. Financial coverage is provided in the event of a loss of employment or a pay cut, providing peace-of-mind to aspiring homebuyers. Flexible and customised plans and solutions to suit individual buyer’s needs are also offered.
• To date, the Division has approximately 5,000 acres of landbank with a GDV of RM42 billion mainly in high growth regions in Klang Valley, Seremban, Penang, Pahang and Johor.
• Upcoming launches: Link homes in Bandar Rimbayu and Seremban 2; bungalows and semi-detached homes at Permatang Santuary in Penang; condominiums at Riana Dutamas and The Terraces, Bukit Jambul Penang; with a total sales value of RM1,428 million and 2,196 units.

• Industry Division

• In August 2019, the Division broke ground for a fully automated Industry 4.0 Industrialised Building System (“IBS”) facility in Bestari Jaya, Kuala Selangor, marking its venture into producing IBS precast concrete products. Set to be completed mid-2021, the plant will have an annual output capacity of 500,000 sqm (equivalent to 3,000 homes) and will showcase the Group’s capabilities in providing end-to-end digital IBS solutions – from design, costing, manufacturing to delivery and on-site installation. IJM is among the first vertically-integrated IBS manufacturers in the country as it leverages on synergies from its Construction and Property Divisions to serve internal and external clients.
• The outlook for the Division hinges on the possible roll-out of infrastructure pump-priming by the Malaysian Government as part of its stimulus measures that are expected to be unveiled in the upcoming Malaysian Budget 2021 in November 2020 and the 12^th Malaysia Plan in January 2021.

• Infrastructure Division

• Kuantan Port’s cargo throughput, although initially affected by the Movement Control Order (MCO), has quickly rebounded and caught up to its pre-Covid-19 levels.
• The opportunities for Kuantan Port are also sizeable and the expansion of Phase 1 of its New Deep Water Terminal has been very timely to capture the growing cargo throughput from the Malaysia China Kuantan Industrial Park (MCKIP). We continue to see interest from FDIs into MCKIP – coupled with the Government’s commitment to supporting infrastructure development in the area, predominantly through the ECRL project – Kuantan Port will play a pivotal role in the economic development in the East Coast region.
• Traffic volumes at the Group’s highway concessions began recovering following the gradual resumption of economic activities when the MCO was lifted. At present, traffic volumes of the Toll Division have improved close to pre-Covid-19 levels.

• Plantation Division

• The increase in crop production growth from our young mature areas in the Indonesian operations and the current favourable commodity price of around RM3000 per tonne of CPO bode well for the Division’s prospects. Global demand for palm oil appears poised to recover as major consumers such as China and India return to the market to replenish dwindling stocks. An added push to use more palm oil in biofuels, particularly in Indonesia, will also augur well for CPO prices.
• In FY2020, FFB production by the Division hit a new high at 1.06 million tonnes (an increase of 9% over the preceding year), crossing the one million tonne mark for the first time.
• 84% of the Division’s planted land bank are in the ‘mature-prime’ and ‘mature-young’ age profile.  This is expected to provide favourable FFB production growth in the coming years.
• Realising a good start to its current financial year (FY2021), the Division reported a quarterly revenue of RM205.99 million, 55% higher against the corresponding quarter of preceding year. The Division also recorded a significantly improved profit before tax of RM115.3 million compared to a pre-tax loss of RM5.4 million in the corresponding quarter of last year.

• Group Strategic Focus: Moving Forward FY2021 to FY2023

To address shorter business cycles, changing consumer behaviour, digital disruptions, rising costs and stiffer competition on the back of global macro headwinds and economic slowdown, the Group announced its three-year strategic focus which are built around three pillars:

• Build resilience: Focuses on driving cost optimisation, monetising low-yielding assets and improving execution capabilities to enhance balance sheet strength and maintaining healthy gearing levels. 
• Drive growth: Explore brownfield expansion of infrastructure assets, develop new ventures complementary to core businesses, form strategic partnerships for regional expansion and enhance growth through strategic merger and acquisitions.
• Nurture capabilities: Embrace digital transformation, innovation and Industry 4.0, enhance best practices of sustainability across the Group, foster workforce agility and build future-ready competencies that are responsive to market changes, drive robust risk management, enhance accountability and performance-based culture.

Mr Liew Hau Seng, CEO & Managing Director of IJM Corporation Berhad said: “We are optimistic that our performance in the upcoming quarters of FY2021 will be better. The last few months have demonstrated the adaptability and resilience of our business and people. The Group’s fundamentals remain solid, anchored by our resilient portfolio of businesses and a strong balance sheet to weather short-term uncertainties.”

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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. Its business activities encompass construction, property development, manufacturing and quarrying, infrastructure concessions and plantations.

Headquartered in Selangor, its operations are located in 8 countries, with primary focus in Malaysia, India and Indonesia. The Group presently has a market capitalisation of around RM4.8 billion and as of June 2020, the Group employed around 4,100 employees and has total assets of RM23 billion.

The Group’s belief in a shared destiny with its employees remains pivotal to its growing 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 media enquiries, please contact:

Ms. Mandy Chen, Corporate Communications, at mandychen@ijm.com or + 60 12 607 6121

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