IJM Corp said it is well-positioned for an improved operational performance in FY25.
PETALING JAYA: IJM Corp Bhd
expects its construction division to perform better in the financial year ending March 31, 2025 (FY25), on the back of its strong order book of RM6.4bil and potential job wins.
For the six-month period of FY25, IJM Corp said, in a filing with Bursa Malaysia, that the division had secured work amounting to RM2.1bil, namely Siliconware Precision Industries phase one, Iskandar Puteri data centre, United Logistic hub (Plot A), Plexus Bridgeview and EDC Mercury.
For the second quarter ended Sept 30, 2024 (2Q25), IJM Corp’s net profit dipped to RM74.21mil from RM93.69mil in the previous corresponding period, while revenue grew to RM1.52bil from RM1.46bil in the previous corresponding quarter.
Earnings per share stood at 2.12 sen versus 2.67 sen previously.
For the six month period, IJM Corp’s net profit dropped to RM161.09mil from RM194.33mil in the previous corresponding period, while revenue rose to RM2.9bil from RM2.68bil a year earlier.
It said the lower profit was mainly due to the higher unrealised foreign exchange losses of RM70mil and RM72.5mil recorded in 2Q25 and 6MFY25 respectively.
“In addition, the group also recognised a fair value gain of RM1.3mil and a fair value loss on WCE Holdings Bhd warrants of RM18.6mil in 2Q25 and 6M25 respectively.
“After excluding the effects of the foreign exchange and the fair value movements, the group’s pre-tax profits decreased marginally by 2.9% for 2Q25 and increased by 8.1% for 6M25.”
For the property division, IJM Corp said revenue for 2Q25 and 6M25 decreased by 12.6% and 10.3% respectively, mainly due to the sale of two parcels of industrial land in Bandar Rimbayu in the previous financial periods.
Meanwhile, revenue for 2Q25 and 6M25 for the manufacturing and quarrying division decreased by 15.6% and 14.2% respectively, mainly due to lower tonnage of piles delivered and ready mixed concrete products.
Going forward, IJM Corp said the property market remained resilient, supported by a positive economic outlook and strong consumer sentiment.
“The property division remains steadfast in growing its business through value-creation, innovation and product differentiation.
“Barring unfavourable foreign exchange effects, the property division is well-positioned to deliver a satisfactory performance for the current financial year on the back of its unbilled sales of about RM2bil.”
The group said the industry division is poised to deliver another year of strong performance for the current financial year on the back of its strong orders in hand.
“The toll division is expected to continue to provide the group with recurrent revenue streams via its existing mature concessions whilst its newer highways are undergoing a gestation period before maturity.
“The group’s port business outlook for FY25 remains positive on the back of improved cargo volume.”
Premised on these factors, IJM Corp said it is well-positioned for an improved operational performance in FY25.
