PETALING JAYA: IJM Corp Bhd
, which saw its first quarter (1Q27) net profit rise by 43.7% year-on-year (y-o-y), expects to perform better operationally in its financial year ending March 31, 2027 (FY27), underpinned by a strong construction order book and improving prospects across several of its businesses.
In a filing with Bursa Malaysia, the group said its construction division is expected to remain a key earnings driver, backed by its RM14.51bil outstanding order book comprising hyperscale data centres, advanced manufacturing and warehousing facilities, as well as road infrastructure projects.
On its property division, the group remained cautious amid a softening market, weighed down by weaker consumer sentiment and heightened global uncertainty.
It said the division would continue to adopt a responsive market strategy and enhance product differentiation to better align with evolving buyer expectations and affordability thresholds.
“The division’s performance is expected to improve this year on the back of unbilled property and land sales of approximately RM2.2bil, while incubating its portfolio of investment properties,” it added.
The industry division, meanwhile, is expected to maintain its strong performance, anchored by a solid order book from the continued rollout of data centres, large-scale industrial buildings and infrastructure projects.
For its toll division, IJM expects its mature concessions to continue providing steady revenue streams, while the construction of the New Pantai Expressway Extension Project (NPE 2) would provide long-term earnings visibility.
As at end-June, NPE 2 was on track with 6% of construction progress achieved, and the project expected to complete by October 2029.
The outlook came as IJM reported a stronger 1Q27, with net profit rising 43.7% to RM137.4mil from RM95.6mil a year earlier, while revenue increased 32.3% to RM2.29bil from RM1.73bil.
The stronger performance was driven primarily by the construction and manufacturing and quarrying divisions.
Construction revenue and pre-tax profit jumped 36.2% and 112% y-o-y, respectively, to RM1.32bil and RM150.7mil, mainly due to higher construction activity in tandem with the larger order book.
Meanwhile, manufacturing and quarrying division revenue rose 42.3% y-o-y to RM433.8mil in 1Q27, while pre-tax profit increased 13.7% to RM61.7mil, mainly due to higher deliveries of piles and ready-mixed concrete.
The property division recorded a 38.5% y-o-y increase in revenue to RM333.7mil, mainly due to the completion of a land sale at the Malaysia-China Kuantan Industrial Park.
However, its pre-tax profit fell 61.7% to RM10.4mil, mainly due to lower unrealised foreign exchange gains and weaker contributions from associates and joint ventures.
The toll division’s revenue declined 11.3% due mainly to the absence of toll compensation following the completion of the NPE toll restructuring, which extended the concession period.
Despite this, its pre-tax profit rose 47.5% to RM31mil, helped by lower amortisation and finance costs as well as lower foreign exchange losses.
Finally, its port division’s revenue and pre-tax profit fell 7.2% and 13.6%, respectively, mainly due to lower cargo throughput as a key customer took longer than expected to restore production capacity following major maintenance.
Separately, IJM said Datuk Lee Teck Yuen had been redesignated as a non-independent non-executive chairman from non-executive director.
Lee will take over as chairman following the retirement of Tan Sri Krishnan Tan Boon Seng at the conclusion of IJM’s 42nd annual general meeting today.
Lee, who holds 11.76 million IJM shares directly, joined the board as a non-executive director on May 30, 2007.
He was redesignated as senior independent non-executive director on Nov 9, 2012, and as non-executive director on June 1, 2022.
IJM also announced yesterday that its owned subsidiary IJM Construction Sdn Bhd had secured two fast-track projects worth a combined RM909.5mil.
Both projects have fast-track schedules of less than 18 months.
Following the latest wins, IJM Construction’s outstanding order book stands at RM14.51bil, with advanced industrial facilities accounting for about 55% of its domestic order book.
