IJM releases Financial Results for Quarter Ended 30 September 2016 

Petaling Jaya, 28 November 2016: IJM Corporation Berhad (“IJM”) today released its financial results for the second quarter ended 30 September 2016. The Group’s operating revenue increased 11.0% to RM1,486.2 million from RM1,339.0 million reported in the same quarter last year on account of higher contributions from the Group’s Construction, Industry and Plantations divisions. The Group’s profit before tax (“PBT”) increased 16.9% to RM259.3 million as compared to RM221.8 million in the corresponding quarter last year due to the Construction, Industry, Plantations and Infrastructure divisions. 

For the quarter, revenue of the Construction division increased by 54.7% to RM557.2 million from RM360.1 million in the same quarter last year, mainly driven by higher contribution from projects that were secured in the previous year. Revenue of the Industry division rose to RM314.7 million, a 27.1% increase from RM247.7 million achieved in the same quarter last year due to higher delivery tonnage of piles and quarry products while the Group’s Plantation division recorded an increase in revenue of 38.8% to RM201.4 million from RM145.1 million as a result of higher crude palm oil prices. Revenue of the Property division, however, saw a marginal decline by 5.3%% to 269.5 million from RM284.5 million last year due to slower take up rate. As a result of the lower cargo throughput handled by the Group’s port concession, revenue of the Infrastructure division declined 52.5% to RM143.2 million from RM301.3 million in the same quarter last year.

In line with the increase in turnover, quarterly PBT of the Construction division increased by 40.1% to RM58.5 million from RM41.8 million. Pre-tax profit of the Property division decreased by 61.5% to RM32.5 million as compared to RM84.2 million achieved in the same quarter last year mainly as a result of the shift in focus to affordable properties, which entail lower margins, as well as increased incentives being offered to buyers. In addition, the results of the division in the same quarter last year included a forex gain of RM31.4 million as opposed to an unrealised forex loss of RM0.6 million this quarter. The Industry division saw a 3.2% increase of its pre-tax profits to RM39.3 million due to increased delivery tonnage. In addition to the improved commodity prices, the Plantation division saw unrealised forex gains of RM9.4 million arising from the weakening US dollar against the Indonesian Rupiah thereby resulting in the division posting a profit before tax of RM64.1 million as compared to a pre-tax loss of RM32.3 million in the same quarter last year when the division incurred unrealised forex losses of RM45.9 million. 

For the quarter, the Infrastructure division recorded a pre-tax profit of RM15.8 million as it incurred forex losses of RM12.2 million as compared to forex losses of RM149.6 million in the same quarter last year. Pre-tax profit contributed by the Group’s port concession was also affected by the decrease in cargo throughput. 

Asserting his confidence in the Group’s outlook, IJM’s CEO & Managing Director Dato’ Soam Heng Choon said, “The Group’s prospects under the Construction and Industry divisions are underscored by strong current outstanding order book levels and further supported by the ongoing infrastructure spending identified by the 11th Malaysia Plan.

The Group is well-poised to expand the capacity of its concessions assets while its existing portfolio provides stable and predictable cash flow streams. The Group also has a fast maturing Plantation land bank profile to provide FFB production growth in the next few years. Despite the challenging property market outlook, the Group’s Property division expects to sustain its performance on the back of unbilled sales of about RM1.7 billion.” 

The Company declared a single tier first interim dividend of 3 sen per share to be paid on 28 December 2016. 

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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 the main board of Bursa Malaysia. 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 RM12 billion and as of September 2016, the Group employed around 4,600 employees and had total assets of RM20.1 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.