IJM Corp’s second-quarter net profit surges 533%


The group said the sharp rise in net profit in Q2 was mainly due to the RM639.4mil gains from the disposal of subsidiaries IJM Plantations Bhd (pic) and Kemena Industries Sdn Bhd.

PETALING JAYA: IJM Corp Bhd expects a better performance in the second half of its financial year ending March 31, 2022 (FY22), as business restrictions continue to be lifted.

In a filing with Bursa Malaysia, the group said its construction division’s outstanding order book currently stood at RM4.51bil.

“The ongoing Home Ownership Campaign, low interest rate regime as well as the recent rate reduction of the real property gains tax bode well for the property market,” said IJM Corp.

The group added that its property division is expected to recover with its wide array of mid-market products in strategic locations and its unbilled sales in hand.

Its industry division’s performance will continue to improve in line with the resumption of construction activities, and its secured order book is expected to underpin its performance in the second half of FY22, while it continues with its business rationalisation efforts through product quality improvements, cost optimisation and process efficiency enhancements.

The performance of its port operations, meanwhile, will depend on the pace of recovery of its customers’ business activities while the group’s toll operations are expected to see a rebound in traffic volumes following the relaxation of movement controls.

For its second quarter ended Sept 30, 2021 (Q2), IJM Corp’s net profit jumped 533% year-on-year to RM629.3mil although revenue dropped 28.2% to RM874.25mil.

The group said the sharp rise in net profit in Q2 was mainly due to the RM639.4mil gains from the disposal of subsidiaries IJM Plantations Bhd and Kemena Industries Sdn Bhd.

However, the lower operating revenue in Q2 was mainly due to the re-imposition of the nationwide lockdown, which had restricted business activities.

For its first half of FY22, IJM Corp’s net profit jumped 585% to RM695mil while revenue was marginally higher at RM1.91bil.

Earnings per share for the six months was 19.24 sen compared to 2.80 sen a year earlier.

The group has declared a first interim dividend of two sen and a special dividend of 15 sen per share, with the ex-date on Dec 14 and payment on Dec 30, 2021.

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