Key highlights:

• Improved results from all divisions, leading to a 28.2% and 118.0% increase in 9-month Group Revenue and PATMI to RM4.16 billion and RM294.8 million, respectively
• RM3.6 billion new construction projects secured in the financial year-to-date, resulting in a four-year high outstanding order book of RM6.6 billion
• Achieved property sales of RM1.4 billion in 9M FY2024, and unbilled Property sales of RM2.5 billion, bolstering near-term earnings visibility
• Strong cash reserves and healthy net gearing ratio of 0.24 times provides resilience and capacity for large-scale project undertakings

Petaling Jaya, 28 February 2024 – IJM Corporation Berhad (“IJM” or “the Group”) today announced its financial results for the third quarter ended 31 December 2023 (3Q FY2024).

Group Financial Performance

The Group’s recorded revenue of RM1,475.4 million and RM4,159.6 million for 3Q FY2024 and 9M FY2024 respectively, an increase of 34.0% and 28.2% as compared to 3Q FY2023 and 9M FY2023 respectively. Correspondingly, the Group recorded pre-tax profits of RM226.2 million and RM597.4 million for 3Q FY2024 and 9M FY2024 respectively, an increase of 53.1% and 82.2% as compared to 3Q FY2023 and 9M FY2023 respectively.

The Construction division saw a revenue increase of 60.3% to RM427.6 million, mainly due to higher construction work activities during the quarter. PBT of the division increased by 42.8% to RM11.8 million compared to the corresponding quarter last year mainly on incurrence of a higher share of losses in associates in the previous year. However, profit margins were adversely impacted by the material and commodity price increases and prolongation cost. Furthermore, the new projects undertaken are presently in their initial stages of construction, preventing profit recognition until a set milestone of physical completion has been achieved.

The Group’s Property division reported revenue of RM501.4 million in 3Q FY2024, 33.7% higher than RM374.9 million registered in the corresponding quarter last year. This growth was mainly driven by higher work progress in ongoing projects and successful completion of the sale of two parcels of land in Kuala Lumpur and Bandar Rimbayu. Correspondingly, pre-tax profits for 3Q FY2024 increased by 56.0% to RM122.5 million compared to RM78.6 million in the same quarter last year, reflecting the division’s higher revenue and improved profit margins, which were boosted by the current portfolio mix of ongoing projects and the gains arising from the recent land sales.

The Group’s Industry division saw an increase in revenue of 22.3% to RM293.6 million in 3Q FY2024 (3Q FY2023: RM240.1 million) from a combination of higher deliveries of piles, quarry products and ready-mixed concrete alongside higher selling prices achieved. Correspondingly, the division recorded an increase of 35.4% in PBT to RM44.9 million in the quarter compared to RM33.2 million in 3Q FY2023.

Revenue for the Infrastructure division increased by 9.6% to RM240.2 million (3Q FY2023: 219.2 million) mainly due to higher port revenue arising from the recovery in cargo throughput, higher ship revenue, and the implementation of new tariff rates. Pre-tax profits for 3Q FY2024 increased 138.6% to RM51.3 million (3Q FY2023: RM21.5 million) mainly due to higher profit contribution from the port business and the absence of the higher maintenance (resurfacing) costs incurred in the previous financial period as well as the recognition of unrealised foreign exchange gains of RM3.3 million in 3Q FY2024 by the Group’s Indian operations.

Prospects for the Coming Financial Year

On the Group’s prospects, CEO & Managing Director of IJM, Mr Lee Chun Fai explained: “The momentum in construction activities has picked up, spurred by increased public infrastructure spending and numerous industrial property projects. Given the Group’s strong balance sheet, with a net gearing of 0.24 times, and our established credentials to undertake large scale projects, we are well placed to grow our existing businesses, develop a portfolio in adjacent businesses and expand our geographical footprint.”

The Group’s Construction order book replenishment prospects are encouraging and is supported by its outstanding order book of RM6.6 billion. This includes RM3.6 billion in new projects secured in FY2024 such as Package 2A and Package 2B of the Immigration Customs and Quarantine Complex (ICQC) for the Johor Baru-Singapore Rapid Transit System (RTS) Link project, the ECRL Kuantan Port spurline, an ancillary building at an industrial property project in Kulim, Kedah, the Kuching Urban Transportation System Rembus Depot in Sarawak and two additional projects secured after the reported quarter – the KLIA Aero Train and infrastructure works at the Malaysia-China Kuantan International Logistics Park.

The outlook of the Property division appears promising given the pause in interest rate hikes and improving consumer sentiment. With its unbilled sales of about RM2.5 billion, the Property division is poised to continue its strong performance.

The performance of the Industry division is expected to be supported by healthy construction activities both domestically and regionally. Supported by a strong balance order book of 1 million tonnes, the Division is well-positioned to sustain its strong performance in the near term.

The Group’s Toll operations are expected to perform better in the current year with the absence of the higher maintenance (resurfacing) costs incurred in the previous year. In line with the tariff increase and the rebound of cargo throughput observed in 9M FY2024, the Port operations are expected to achieve a better performance.

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About IJM Corporation Berhad

IJM Corporation Berhad (“IJM”), formed in 1983, today ranks as one of Malaysia’s leading conglomerates with an international footprint forged by its four core businesses: construction, property development, industry (quarrying and the manufacture of building materials) and infrastructure concessions. IJM holds leading positions across all its business divisions. Its growth is the direct result of strong leadership, dedicated employees, financial prudence and commitment to good governance and quality.

The Group presently has a market capitalisation of around RM7.9 billion and as of December 2023, the Group employed around 3,000 employees and had total assets of RM21.3 billion.

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 shane@ijm.com or + 60 3 7985 8041