KUALA LUMPUR: IJM Corp Bhd expects a satisfactory performance for the current financial year ending March 31, 2023 (FY23), supported by the recovery in the Malaysian business landscape.
“The group’s performance is supported by its outstanding construction order book of RM4.8bil, which includes the four recently secured construction contracts worth RM1.4bil - the Kapar Hospital and Inland Revenue Board office tower in Selangor, as well as the ASEM Chip Assembly & Testing Facility and Maritime Signature Commercial Tower in Penang,” group chief executive officer and managing director Liew Hau Seng said in a statement.
He added that the group also had property unbilled sales of RM3.1bil and its balance orders of ICP piles of over one million tons to further underscore its performance.
“The group’s toll operations have recovered to pre-pandemic levels while the performance of our port operations will be dependent on the global recovery,” Liew said.
IJM’s net profit plunged 95.7% to RM27.03mil in the second quarter ended Sept 30 against RM629.3mil in the same quarter last year.
Its earnings per share fell to 0.77 sen from 17.42 sen previously.
Revenue, however, rose 22.6% to RM1.07bil versus RM874.2mil achieved a year ago.
IJM noted that its revenue and pretax profit (PBT) exclude that of the plantation division following the completion of the disposal of IJM Plantations Bhd on Sept 6.
The PBT of the construction division increased by 154.9% to RM24.4mil mainly due to higher profit margins recognised upon finalisation of accounts of recently completed projects.
However, the revenue of the division fell 22.6% to RM268.6mil compared to the corresponding quarter last year due to certain projects being completed in the previous financial year while newer projects secured were still in early stages of construction.
Its property division reported revenue of RM326.6mil in 2Q23, up 103.1% from RM160.8mil last year mainly due to higher work progress at its ongoing projects.
Correspondingly, PBT for 2Q23 increased by 298.3% to RM29.3mil compared to a loss before tax of RM14.8mil in the same quarter last year.
IJM said PBT would have been higher had the property division not been negatively impacted by unrealised foreign exchange losses of RM13.2mil in the quarter.
Revenue for the infrastructure division’s current quarter increased by 39.6% to RM217.2mil driven mainly by higher toll revenue recorded both locally and overseas.
This was partly negated by the lower revenue recorded by the division’s Kuantan Port operation due to lower cargo throughput.
However, pre-tax losses for 2Q23 widened by 89.3% to RM16.6mil mainly due to the overseas toll division that was affected by higher net unrealised foreign exchange losses of RM35.3mil on its US dollar-denominated borrowings, and higher resurfacing road maintenance cost. The pre-tax losses were partially mitigated by the higher profit contributions from the group’s local toll operations.
IJM said its balance sheet, with a net gearing of 0.27 times, is expected to bolster the group’s credentials to undertake large-scale projects.
In the first six months to Sept 30, IJM posted a net profit of RM60.4mil on revenue of RM2.14bil.