IJM Corp 3Q net profit down 33%, sees improvement in 4Q

KUALA LUMPUR (Feb 25): IJM Corp Bhd saw a 32.7% drop in net profit to RM98.44 million for its third financial quarter ended Dec 31, 2021 (3QFY22) from RM146.34 million a year ago, largely due to lower revenue contributions from its construction and property development segments.

This resulted in lower earnings per share of 2.73 sen for 3QFY22 compared with 4.03 sen for 3QFY21.

Revenue for 3QFY22 also fell by 12% to RM1.27 billion from RM1.44 billion a year ago.

On a quarterly basis, the group's net profit fell 84.4% from RM629.3 million posted for 2QFY22, mainly due to the gain of RM639.4 million arising from the disposal of IJM Plantations Bhd and Kemena Global Sdn Bhd in the quarter.

"Excluding the one-off gain on disposal, IJM said the group's pre-tax profit increased by 139.7% quarter-on-quarter mainly due to higher profit contributions from all the operating divisions following the resumption of economic activities in 3QFY22," it said in a bourse filing on Thursday (Feb 24).

Nevertheless, the group saw its net profit jump three-fold to RM793.42 million for the cumulative nine months ended Dec 31, 2021 (9MFY22) from RM247.76 million a year ago, even though revenue came in lower by 4.7% to RM3.18 billion from RM3.33 billion in 9MFY21 due to lower construction activities as a result of the Covid-19 lockdown.

On prospects, IJM Corp said with the continued improvement in economic activities, the group's performance for 4QFY22 is expected to be satisfactory. The group's construction division has an outstanding order book of RM4.21 billion, while its property division has unbilled sales of about RM2.3 billion.

Shares in IJM Corp ended unchanged at RM1.53 on Thursday, valuing the group at RM5.58 billion.

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