IJM posts 34% rise in 3Q profit, says group well-placed to grow its businesses

• The property segment also saw an increase of 33.7% in quarterly revenue to RM501.4 million.

KUALA LUMPUR (Feb 28): IJM Corp Bhd's net profit rose 34.3% to RM100.43 million for its third quarter ended Dec 31, 2023 (3QFY2024) from RM74.79 million a year earlier on the back of higher revenue across all its business segments.

Total revenue for the quarter was up 34% year-on-year at RM1.48 billion from RM1.1 billion, according to the group's stock exchnage filing on Wednesday. IJM did not recommend any dividend for the quarter.

For the nine-month period, net profit surged 118% to RM294.76 million from RM135.23 million in the corresponding period of the previous financial year, while revenue increased 28.2% to RM4.16 billion from RM3.25 billion.

On a segmental basis, the group saw a higher revenue for its construction segment in 3Q, with an increase of 60.3% to RM427.6 million due to higher construction work activities

The property segment also saw an increase of 33.7% in quarterly revenue to RM501.4 million due to the higher work progress in ongoing projects and the successful completion of the sale of two parcels of land in Kuala Lumpur and Bandar Rimbayu, Shah Alam, Selangor.

Quarterly revenue for its industry division increased 22.3% to RM293.6 million thanks to a higher volume of deliveries and higher selling prices achieved, while that for its infrastructure division also increased by 9.6% to RM240.2 million due to higher port revenue, higher ship revenue and new tariff rates.

Looking ahead, IJM chief executive officer Lee Chun Fai said the group was well-placed to grow its businesses, given its strong balance sheet with a net gearing of 0.24 times and established credentials to undertake large-scale projects.

“The momentum in construction activities has picked up, spurred by increased public infrastructure spending and numerous industrial property projects,” he said in a statement.

Furthermore, IJM reported an outstanding order book of RM6.6 billion, which includes new projects secured in FY2024 such as the Immigration Customs and Quarantine Complex for the Johor Bahru-Singapore Rapid Transit System link project and the ECRL Kuantan Port spur line.

“The outlook of the property division appears promising given the pause in interest rate hikes and improving consumer sentiment. With its unbilled sales of about RM2.5 billion, the property division is poised to continue its strong performance,” said the group in the statement. It added that the industry division is expected to be supported by strong orders in hand, while its port operations are expected to benefit from tariff increases and a rebound in cargo.

IJM's share price closed down two sen or 0.91% at RM2.17 on Wednesday, giving the group a market capitalisation of RM7.92 billion.

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