*Revenue and PBT exclude that of the Plantation Division following the completion of the disposal of IJM Plantations Berhad on 6 September 2021. 

** PATMI and earnings per share include the financial results of IJM Plantations Berhad

Key highlights:

• Revenue and PBT from Continuing Operations increased by 3.7% and 8.9%, respectively.  Adjusting for foreign exchange losses of RM45.0 million (1QFY21 forex losses of RM1.4 million), PBT would have improved by 60.0% compared to the corresponding quarter last year
• Strong performance by the Industry Division in the quarter, positive momentum ahead supported by balance orders in excess of 1 million tons
• Outstanding Construction order book of RM3.94 billion and unbilled Property sales of RM2.2 billion to underpin near term earnings visibility
• Strong cash reserves and healthy net gearing ratio of 0.28 times provides resilience and head room to undertake large scale projects

Petaling Jaya, 24 August 2022 – IJM Corporation Berhad (“IJM”) today released its financial results for the first quarter ended 30 June 2022 (Q1 FY2023).

Group Financial Performance

Group revenue for Q1 FY2023 increased 3.7% to RM1,072.7 million from RM1,034.2 million reported in the corresponding quarter last year. The increase in revenue was seen across most business divisions. Similarly, the Group’s PBT increased by 8.9% to RM91.2 million in the quarter from RM83.7 million in the first quarter of the previous year. Adjusting for foreign exchange losses of RM45.0 million (1QFY21 forex losses of RM1.4 million), PBT would have improved by 60.0% compared to the corresponding quarter last year.

For the quarter, the Construction Division reported revenue of RM268.3 million and a pre-tax profit of RM19.5 million. Compared to the corresponding quarter in the previous year, the Division recorded lower construction activities as a result of certain projects being completed in the previous financial year while newer projects secured were still in early stages of construction.

The Property Division reported marginally higher revenue and PBT of RM345.0 million and RM33.9 million, respectively, in Q1 FY2023, compared to the corresponding quarter last year mainly due to higher work progress at its ongoing projects.

The Industry Division saw an increase in revenue and PBT by 52.6% and 310.1%, respectively, to RM249.3 million and RM31.3 million in Q1 FY2023 from higher deliveries of piles and ready-mixed concrete, coupled with improved margins from the piles business.

Revenue of the Infrastructure Division increased by 30.4% to RM210.1 million whilst pre-tax profit decreased by 77.5% to RM2.8 million compared to Q1 FY2022 mainly due to the net unrealised foreign exchange losses of RM33.0 million on its US Dollar denominated borrowings (1Q FY2022: RM2.3 million losses).

Prospects for the Coming Financial Year

Despite the deteriorating global economy, the Group expects a satisfactory performance for the current financial year, supported by the recovery in the Malaysian business landscape.

The Group reiterated that its strategy focus of building financial resilience in the last two years by implementing cost containment measures as well as aggressively paring down property inventory and low yielding assets, has yielded results with the Group’s fundamentals stronger post the COVID pandemic. Its balance sheet, with a net gearing of 27.8%, is expected to bolster the Group’s competitive position to undertake large scale projects that are on a PFI basis.

In the near term, the Group’s performance is supported by its outstanding Construction order book of RM3.94 billion, Property unbilled sales of RM2.2 billion and its balance orders of ICP piles of over 1 million tons. The Group’s Toll operations has recovered to pre-pandemic levels while the performance of the Port operations will be dependent on the global recovery.

In July 2022, IJM saw the entry of new major investors into the Malaysia China Kuantan Industrial Park (“MCKIP”) and also entered into a joint venture with China Harbour Engineering Company Ltd. (“CHEC”) for the development of Malaysia-China Kuantan International Logistics Park (“MCKILP”), an integrated mixed development and logistic hub in Kuantan. MCKILP is expected to attract downstream industries in logistics, automobile, marine engineering, advanced steel materials, palm oil processing, petrochemical and e-commerce that could become value chain suppliers to surrounding industrial parks such as MCKIP 1 and 2, Gebeng Industrial Estate and Pekan Automotive Park.

Consistent with the Group’s past practices, no dividend was declared in the first quarter.

IJM will be conducting its 38^th Annual General Meeting on 25 August 2022, which will be held virtually.

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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 7 countries, with primary focus in Malaysia, and India. The Group presently has a market capitalisation of around RM6.4 billion and as of June 2022, the Group employed around 3,000 employees and had total assets of RM20.9 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