IJM Corp expects rebound in its operations

The group said its construction and industry divisions are witnessing encouraging prospects for order book replenishment.

PETALING JAYA: IJM Corp Bhd sees an encouraging rebound in its operations and positive outlook for all business divisions.

In a statement, the group said its construction and industry divisions are witnessing encouraging prospects for order book replenishment.

“The group’s improving outlook is also supported by continued strong property sales in financial year ended March 31, 2024 (FY24), increased cargo throughput at its Kuantan Port operations and the final stages of restructuring its tollway concessions with the government,” it said

For the fourth quarter ended March 31, 2024, (4Q24) IJM Corp’s net profit jumped to RM305.52mil from RM23.05mil in the previous corresponding period, while revenue in 4Q24 grew to RM1.76bil from RM1.33bil.

For FY24, IJM Corp said net profit surged to RM600.28mil from RM158.28mil a year earlier, while revenue grew to RM5.92bil from RM4.57bil in the previous corresponding period.

For the year, the construction division reported higher revenue of RM1.68bil, mainly due to increased construction activities during the period.

The division recorded a lower profit of RM36.8mil for FY24, mainly due to losses being recognised for three ongoing projects, which were impacted by work scope changes, building material price increases and prolongation costs while potential claims are being pursued.

“Additionally, new projects undertaken are currently at their initial stages of construction, where no profit recognition is reported,” said IJM Corp.

The group’s property division reported improved revenue of RM2.03bil and pre-tax profit of RM391mil in FY24, compared with the previous year.

“The improvement in results would have been more significant had it not been for the higher profit recorded in FY23, which resulted from the completion of a major cost finalisation exercise for completed projects at that time,” the company said.

The industry division, meanwhile, posted its highest-ever revenue and pre-tax profit of RM1.19bil and RM181.8mil, respectively in FY24.

“This achievement was attributed to higher selling prices and increased sales volume recorded in the piles business,” said the company.

Revenue of the group’s infrastructure – toll division for the year decreased 7.4% to RM519.6mil compared with FY23, mainly due to the restructuring exercise of its Besraya highway, which involved a lower toll rate and a longer concession period.

The port operations recorded higher revenue of RM467mil in FY24 compared with the previous year, mainly driven by higher port revenue due to the recovery in cargo throughput, additional cargo from industries near Kemaman, higher ship revenue and the implementation of new tariff rates effective end March 2023.

IJM Corp has declared a single-tier second interim dividend of five sen per share, along with a special dividend of one sen per share.

Combined with the single-tier first interim dividend of two sen per share declared in 2Q24, the total dividend declared for FY24 was eight sen per share and amounted to RM280mil.

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