*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:

• Improving outlook across all divisions to drive core earnings growth in FY2023
  
  • RM1.7 billion new construction projects amassed in the financial year, bringing outstanding order book to RM4.3 billion as at 31 March 2022, provides near term earnings visibility
  • Record property sales of RM2.5 billion in FY2022, healthy unbilled sales of RM2.3 billion to underpin near term financial performance
  • Robust Industry Division orders - balance order book currently above 1 million tons, highest since 2016
  • Entry f sizeable investors into MCKIP to drive port cargo throughput growth
  • Toll operations’ traffic volume is seeing quick recovery post-lockdown
• Strong balance sheet with net gearing ratio of 26.4%
• Total dividends for FY2022 at 21 sen per share (FY2021: 6 sen)

Pick-up in momentum seen across all business Divisions

Petaling Jaya, 27 May 2022 – IJM Corporation Berhad (IJM) sees encouraging prospects ahead as its order book replenishment outlook for the Construction and Industry Divisions brighten. The Group’s improving outlook is further supported by its record property sales in FY2022, the entry of new major investors into the Malaysia China Kuantan Industrial Park (MCKIP), as well as a natural traffic recovery experienced at its tollways.

The Group reiterated its strategy of building resilience to address the short-term economic uncertainties through cost containment, aggressive paring down of property inventory and low yielding assets as well as proactive capital management. The execution of the strategy has paid off with the Group’s fundamentals strengthening over the past few years. Its balance sheet, with a net gearing of 26.4%, is expected to bolster the Group’s position to undertake large scale projects.

CEO & Managing Director of IJM, Mr Liew Hau Seng explained, “Despite the Covid-19 pandemic, we managed to secure RM1.7 billion new construction contracts, mainly from the private sector. At end-March 2022, we had a healthy outstanding construction order book of RM4.3 billion, providing the Group with good earnings visibility over the next few years. Furthermore, we registered property sales of RM400 million in the final quarter on the back of encouraging take up of mid-range properties, taking our full year sales to a record RM2.5 billion. Notably, the Group also continued to pare down its completed property inventory to RM833.9 million at end-March 2022 from RM1,154.5 million a year ago.”

The Industry Division’s performance is expected to continue improving in line with the resumption of construction activities, both domestically and abroad. The Division’s balance order book, which is in excess of 1 million tons, is the highest since 2016 and is expected to underpin the Division’s performance in the near term.

On the Port’s longer term prospects, Mr Liew added: “The growth potential for Kuantan Port is encouraging. MCKIP is in the midst of finalising two new major investors, namely the Bosai Minerals Group (Bosai) and Dongguan Jianhui Paper (Jianhui), that will collectively occupy 600 acres of land at MCKIP 2 with an initially investment of about RM7 billion. Bosai’s first phase, which consists of an alumina and silicon manganese alloy facility, is expected to commence operations in 2024. Jianhui, which is setting up a paper production facility, is expected to commence operations by 2025. Additionally, Alliance Steel is currently pursuing a significant expansion of its current production capacity of 3.5 million tons per annum by acquiring additional land in MCKIP 1. Coupled with the Government’s commitment to supporting infrastructure development in the area, predominantly through the ECRL project, we are confident that Kuantan Port will play a pivotal role as a catalyst to the economic development of the East Coast region.”

IJM reports full year PATMI of RM794.9 million, rewards shareholders with bumper dividend of 21 sen per share in FY2022

IJM today released its financial results for the year ended 31 March 2022 (FY2022). The Group posted operating revenues for the current quarter and year at RM1,232.5 million and RM4,409.0 million respectively. The Group recorded pre-tax profit of RM68.8 million and RM317.9 million for 4Q FY2022 and FY2022 respectively. For the year, the Group, reported PATMI of RM794.9 million, an increase of 83.2% compared to RM433.9 million in FY2021, mainly due to the gain from the divestment of its plantation business.

For the quarter, the Construction Division reported revenue of RM377.6 million and saw higher PBT at RM48.6 million compared to the corresponding quarter last year mainly due to the finalisation of accounts of certain joint venture projects. The Group’s Property Division reported revenue of RM396.7 million in 4Q FY2022 while PBT stood at RM20.0 million. While the Industry Division recorded revenue of RM229.7 million in 4Q FY2022, the Division reported a 56.6% decrease in PBT to RM25.2 million in the quarter compared to 4Q FY2021, mainly due to gains of RM78.6 million arising from the disposal of an overseas subsidiary and certain property, plant and equipment in FY2021. Excluding these gains from the disposals in FY2021, the pre-tax profit from business operations for FY2022 improved significantly by 759.6%.

Revenue of the Group’s Infrastructure Division for the current quarter increased by 28.8% to RM228.4 million as the Toll and Port operations picked up since the lifting of the movement restrictions. However, a pre-tax loss of RM28.0 million was recorded in 4Q FY2022, mainly due to the one-off impairment of RM77 million in respect of its investment in toll concession assets, higher major maintenance cost and higher foreign exchange loss recorded in 4Q FY2022 of RM9.4 million (4Q FY2021 of RM1.6 million).

Following the results, the Company declared a single tier second interim dividend of 4 sen per share. Coupled with the single tier first interim dividend and special dividend of 2 sen and 15 sen, respectively, per share declared in 2Q FY2022, the total dividend declared for FY2022 amounts to 21 sen per share. FY2021 total dividend declared was 6 sen per share.

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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 March 2022, the Group employed around 3,000 employees and had total assets of RM21.0 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