Key highlights:

• Revenue improves by 36.1% to RM1.46 billion, with gains across all Divisions
• PATMI improves by 246.6% to RM93.7 million, interim dividend of 2 sen declared
• RM2.8 billion new construction projects secured in the financial year-to-date, resulting in a four-year high outstanding order book of RM6.4 billion
• Achieved Property sales of RM851 million in 1H FY2024, and unbilled Property sales of RM2.5 billion to bolster near-term earnings visibility
• Strong cash reserves and healthy net gearing ratio of 0.27 times provides resilience and capacity for large scale project undertakings

Petaling Jaya, 30 November 2023 – IJM Corporation Berhad (“IJM” or “the Group”) today released its financial results for the second quarter ended 30 September 2023 (2Q FY2024).

Group Financial Performance

Group revenue for 2Q FY2024 increased 36.1% to RM1,458.4 million from RM1,071.9 million reported in the corresponding quarter last year. The Group’s pre-tax profit increased 115.1% to RM191.0 million in the quarter (2Q FY2023: RM88.8 million).

The Construction Division reported a notable increase in revenue of 54.9% to RM416.2 million, mainly driven by higher construction work activities during the period. However, the Division’s PBT declined by 37.3% to RM15.3 million compared to the corresponding quarter last year, as profit margins on some ongoing projects were negatively impacted by increases in material and commodity prices, along with prolongation cost. Additionally, profit recognition on new projects undertaken is pending until a certain physical completion milestone is achieved.

The Group’s Property Division reported revenue of RM463.7 million in 2Q FY2024, a 42.0% increase from RM326.6 million registered in the corresponding quarter last year mainly due to higher work progress in ongoing projects and the completion of the sale of two parcels of industrial land in Bandar Rimbayu. Correspondingly, pre-tax profits for 2Q FY2024 increased by 159.7% to RM76.2 million, up from RM29.3 million in the same quarter last year, reflecting the higher revenue and improved profit margin resulting from the current portfolio mix of ongoing projects and sale of industrial land.

The Group’s Industry Division saw an increase in revenue of 21.9% to RM316.0 million in 2Q FY2024 (2Q FY2023: RM259.3 million) from higher deliveries of piles, quarry products and ready-mixed concrete. However, the Division recorded a PBT of RM44.7 million for the quarter, 11.6% lower compared to RM50.6 million in 2Q FY2023, primarily due to the one-off gain of RM7.6 million from the disposal of assets in 2QFY23.

Revenue for the Infrastructure Division in the current quarter increased by 11.6% to RM242.4 million (from RM217.2 million in 2Q FY2023), driven largely by higher port revenue, which benefitted from the recovery of cargo throughput and higher ship revenue. Pre-tax profits for 2Q FY2024 saw an uptick, fueled by higher profit contribution from the port business, lower unrealised foreign exchange losses of RM14.2 million in 2Q FY2024 on the Group’s US Dollar denominated borrowings for its Indian operations (compared to RM35.3 million losses in 2QFY23) and the absence of higher maintenance resurfacing costs that were incurred in the corresponding quarter last year.

Prospects for the Coming Financial Year

On the Group’s prospects, CEO & Managing Director of IJM, Mr Lee Chun Fai explained: “With the improving macroeconomy and pick up in construction activities, the Group is well placed to drive our growth agenda of growing our existing businesses, developing a portfolio in adjacent businesses and expanding our geographical footprint. IJM’s balance sheet, with a net gearing of 0.27 times, is expected to bolster the Group’s credentials to undertake large scale projects and strategic investments.”

The Group’s Construction order book replenishment prospects are encouraging and is supported by its outstanding order book of RM6.4 billion, which includes three recently secured construction contracts worth RM1.7 billion in the quarter under review – 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 spur line and an ancillary building at an industrial property project in Kulim, Kedah. 

The Property division maintains its commitment to offering compelling products, carefully tailored to align with market preferences across diverse price points. With unbilled sales of about RM2.5 billion and its on-going efforts in introducing attractive packages with right product pricing, the Property division is expected to deliver a strong performance in the near term.

The performance of the Group’s Industry division is expected to be supported by healthy construction activities both domestically and regionally. Supported by a strong balance order book of over 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, such as resurfacing costs incurred in the previous year. In line with the tariff increase which commenced on 1 April 2023 and the recovery of cargo throughput experienced in 1H FY2024, the Group’s Kuantan Port operation is expected to deliver a better performance in the short term.

With the release of the 2Q FY2024 results, the Company declared a single tier interim dividend of 2.0 sen per share.

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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 RM6.6 billion and as of September 2023, the Group employed around 3,000 employees and had total assets of RM20.6 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