Key highlights

• Revenue increased by 6.9% to RM1.54 billion
• PBT increased by 38.9% to RM143.4 million
• Outstanding order book of RM6.1 billion and unbilled property sales of RM2.0 billion to provide near term earnings visibility
• The New Deep Water Terminal off to a good start with Phase 1A fully operational
• Well-positioned to meet the new construction landscape as the country is still in need of quality contractors with a strong execution track record to execute its infrastructure ambitions to cater to its economic growth

Petaling Jaya, 28 August 2019 - IJM Corporation Berhad (“IJM”) today released its financial results for the first quarter ended 30 June 2019. Group consolidated revenue stood at RM1,543.6 million, representing an increase of 6.9% from RM1,444.3 million reported in the same quarter a year ago following higher revenues contributed by the Group’s Property and Infrastructure divisions. The Group’s profit before tax increased by 38.9% to RM143.4 million compared to the same quarter last year mainly due to improved earnings posted by the Construction, Property, Industry, Plantation and Infrastructure divisions.

Revenue of the Construction division this quarter decreased marginally by 1.7% compared to the same quarter last year to RM518.0 million as certain major projects which contributed significantly to the preceding year’s revenue have since been completed.

The Property division reported higher revenue, by 38.2%, to RM462.4 million as compared to the same quarter in the previous year following higher sales recorded and the completion of some projects in the current quarter.

Revenue reported by the Industry division was almost unchanged at RM231.3 million compared to the same quarter last year.

The Infrastructure division recorded an increase in revenue of 18.4% to RM198.7 million, mainly attributable to an expansion of cargo throughput handled by the Group’s port concession which grew by 78% in the current quarter compared to the same quarter in the previous year. The Group’s wholly-owned toll concessions in Malaysia also contributed to revenue growth in the current quarter compared to the corresponding quarter in the preceding year.

The Plantation division recorded a decrease in revenue by 27.3% against the previous year’s corresponding quarter to RM133.1 million mainly due to a decrease in CPO sales volume and lower commodity prices.

For the quarter, PBT of the Construction division increased marginally by 2.3% to RM40.6 million compared to the previous year’s corresponding quarter mainly due to a decrease in unrealised foreign exchange losses.

In tandem with the increase in revenue, pre-tax profit of the Property division was RM45.9 million, 2.1% higher compared to the same quarter last year.

The Industry division saw its pre-tax profits increase by 15.5% to RM15.2 million mainly due to improved margins in the piles and ready-mixed concrete sectors.

The higher contributions from the Group’s local tolls and port concessions as well as toll concession investment in Argentina increased the division’s pre-tax profit for the current quarter to RM44.4 million from a pre-tax profit of RM24.9 million recorded in the previous year’s corresponding quarter.

The Plantation division reported a lower loss before tax of RM5.4 million this quarter as compared to a loss before tax of RM26.3 million in the same quarter last year mainly due to net unrealised foreign exchange gains of RM0.2 million compared to RM30.9 million in the same quarter in the previous year following the strengthening of the Indonesian Rupiah against the US Dollar.

Dato’ Soam Heng Choon, Managing Director & CEO of IJM Corporation Berhad said: “Construction and Property will be the main driver of our top line. We have a healthy outstanding construction order book of RM6.1 billion that comprises a good mix of private and public projects as well as IJM Land property development jobs. Apart from providing earnings visibility over the next few years, this wide exposure accords us more resilience where we are able to participate in different economic cycles.

On the Group’s property division outlook, Dato’ Soam said: “The Group’s Property division expects to sustain its performance on the back of unbilled sales of around RM2.0 billion and in the pipeline over the next quarter are attractive launches of landed and high-rise projects across the country such as The Terraces, Bukit Jambul in Penang, Starling in Bandar Rimbayu, Riana Dutamas (Parcel 2), in Segambut and Austin Duta landed homes in Johor.

On Kuantan Port, Dato’ Soam elaborates: “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, into Kuantan as well as the commencement of ECRL, to undertake the burgeoning cargo throughput.”

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

IJM also announced that shareholders approved all resolutions at the company’s 35^th Annual General Meeting today, where CEO & Managing Director, Dato’ Soam Heng Choon gave an overview of the results achieved in FY 2019 and fielded questions from shareholders.

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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 located in 10 countries, with primary focus in Malaysia, India and Indonesia. The Group presently has a market capitalisation of around RM8.4 billion and as of June 2019, the Group employed around 4,600 employees and has total assets of RM24 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