IJM Corp’s 3Q profit rises 13%, sees stronger growth from construction, property divisions

• IJM expects a steady performance in the property sector, backed by RM1.6 billion in unbilled sales.

KUALA LUMPUR (Feb 27): IJM Corp Bhd (KL:IJM) reported a 12.9% year-on-year increase in net profit for the third quarter ended Dec 31, 2024 (3QFY2025), driven by higher construction activities and a land sale in Penang.

Quarterly net profit rose to RM113.34 million, versus RM100.43 million in 3QFY2024. Earnings per share increased to 3.23 sen from 2.86 sen, according to IJM in a bourse filing on Thursday.

Revenue, meanwhile, grew 4.4% to RM1.54 billion, from RM1.48 billion in 3QFY2024.

No dividend was declared for the latest quarter.

For the first nine months ended Dec 31, 2024 (9MFY2025), net profit declined 6.9% year-on-year to RM274.43 million, while revenue increased 7.2% to RM4.46 billion.

In a statement, IJM said its acquisition of a 50% stake in JRL Group Holdings Ltd, announced in November, is set for completion by the financial year end. The investment is expected to expand IJM’s construction expertise in the UK, while bolstering its pipeline of property developments.

JRL’s £1.3 billion (RM7.2 billion) order book is set to enhance IJM’s international presence and complement its RM6 billion existing order book.

"IJM continues to strengthen its position in the industrial and high-value construction sectors,” said group chief executive officer and managing director Datuk Lee Chun Fai in the statement.

He said recent contract wins — including a RM284.1 million logistics hub for Exio Logistics in Shah Alam and a RM259.4 million data centre project in Iskandar Puteri, Johor — reinforce the group’s expertise in delivering large-scale, fast-track projects that support Malaysia’s growing digital and logistics infrastructure.

“With our healthy order book and multiple industrial property and data centre tenders in the pipeline, we are focused on execution and expanding our footprint in high-growth sectors,” he said.

IJM expects a steady performance in the property sector, backed by RM1.6 billion in unbilled sales. It also anticipates another solid year for its industry division, supported by demand for industrial buildings, data centres, and semiconductor facilities.

The group said toll operations are expected to provide recurring revenue, though newer highways are still in their gestation period. Meanwhile, the port business is likely to face headwinds due to weaker steel exports, it said.

IJM shares gained 12 sen or 5.69% to close at RM2.23 on Thursday, giving the group a market capitalisation of RM7.4 billion.

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