IJM Corp said it is well-positioned for an improved performance in FY25.
PETALING JAYA: IJM Corp Bhd
’s net profit fell 14% year-on-year (y-o-y) to RM86.9mil in its first quarter ended June 30, 2024 of financial year 2025 (1Q25), impacted by unrealised foreign-exchange losses.
This was despite the higher revenue recorded, which rose by 15% y-o-y to RM1.4bil.
With the reduced bottom line, IJM Corp’s earnings per share was lower at 2.48 sen in 1Q25.
In a filing with Bursa Malaysia, the group said the lower profit for the quarter under review was due to the higher unrealised foreign-exchange gains of RM41.7mil recorded in 1Q24 as opposed to unrealised foreign-exchange losses of RM1.4mil in 1Q25.
Additionally, IJM Corp said it also recognised a fair value loss on WCE Holdings Bhd warrants of RM19.9mil in 1Q25.
For the construction segment, the group’s revenue and pre-tax profit for 1Q25 improved by 76% and 110.5%, respectively, as compared to 1Q24.
Meanwhile, the property development division’s revenue for 1Q25 decreased marginally by 7.3% as compared with 1Q24 mainly attributable to lower level of work progress achieved for the division’s ongoing developments.
Moreover, lower deliveries of piles, quarry and ready mixed concrete products led to lower revenue for the manufacturing and quarrying segment which decreased by 12.7% in 1Q25 as compared with 1Q24.
Revenue and pre-tax profit for IJM Corp’s toll business in 1Q25 decreased by 13.8% and 38.1%, respectively, as compared with 1Q24.
The group said this was due to lower traffic volumes in certain overseas tollways as well as the absence of compensation income post-restructuring of the local toll roads in the current quarter.
On the other hand, revenue of the company’s port business in 1Q25 increased by 23% y-o-y, driven by higher port revenue due to the increase in cargo throughput. Pre-tax profit for this segment almost doubled y-o-y in 1Q25.
On the whole, IJM Corp said it is well-positioned for an improved performance in FY25.
Looking ahead, the group said its construction division will focus on the timely execution and completion of its order book at hand of RM6.5bil.
The order book grew by RM1.3bil in the current quarter comprising Siliconware Precision Industries Phase 1, Iskandar Puteri Data Centre and United Logistic Hub (Plot A). The group expects this division to perform better in FY25 supported by the current order book in hand and the anticipation of further job wins during FY25.
IJM Corp said the property market showed signs of recovery, supported by a positive economic outlook and strong consumer sentiment. The group anticipates this division to be well-positioned to maintain its positive performance in FY25, underpinned by its unbilled sales of about RM2.3bil and diverse range of new property launches scheduled for FY25.
Further, the industry division is poised to deliver another year of strong performance in FY25, with its secured order book of 0.9 million tonnes and the pipeline of new projects coming on stream, both locally and overseas.
