IJM hopes 9MP will revive construction sector

IJM Corporation Bhd managing director Datuk Krishnan Tan Boon Seng hopes that the Ninth Malaysia Plan would jumpstart the country's lacklustre construction sector. 

“It is a welcome relief as the sector has seen very little work in the past years,” he said on the sidelines of the Invest Malaysia 2006 Conference yesterday. 

IJM, which has half its order book of RM3bil in jobs abroad, would continue to expand overseas although the company would look out for opportunties when the 9MP was announced, he said. 

IJM’s current revenue mix 70% local operations and 30% overseas (property being the major contributor).  

It is currently negotiating to secure the construction of an elevated expressway from Quidabad Intersection to Jinnah Bridge in Karachi, Pakistan worth RM800mil, which would see IJM’s order book rising to RM3.9bil.  

The company's current book will last for over two and a half years.  

On his expectations for topline growth in the year ending March 31, 2007, Tan said it “would be significant.” 

On the company's dividend policy, Tan said the payout would remain at 15% given the company's strategy to build capacity over the next two to three years, but could go higher if it made any asset disposal. 

He said IJM was also prepared to raise RM600mil via a bond issue for the Kaseh Highway.  

 IJM :  [Stock Watch]  [NewsIJM-WA :  [Stock WatchIJM-WB :  [Stock Watch]

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