IJM Corp 3Q net profit jumps 34%

KUALA LUMPUR: IJM Corp Bhd is poised to grow its existing businesses, develop a portfolio in adjacent businesses and expand geographical footprint given its strong balance balance sheet.

“The momentum in construction activities has picked up, spurred by increased public infrastructure spending and numerous industrial property projects.

“Given the group’s strong balance sheet, with a net gearing of 0.24 times, and our established credentials to undertake large-scale projects, we are well placed to grow our existing businesses, develop a portfolio in adjacent businesses and expand our geographical footprint,” CEO and managing director Lee Chun Fai said in a statement.

The conglomerate’s construction order book replenishment prospects are encouraging and is supported by its outstanding order book of RM6.6bil.

IJM said the outlook of the property division appears promising given the pause in interest rate hikes and improving consumer sentiment.

“With its unbilled sales of about RM2.5bil, the property division is poised to continue its strong performance.”

Meanwhile, the performance of the industry division is expected to be supported by healthy construction activities both domestically and regionally while toll operations are expected to perform better in the current year with the absence of the higher maintenance (resurfacing) costs incurred in the previous year.

“In line with the tariff increase and the rebound of cargo throughput observed in the first nine months ended Dec 31 (9M24), the port operations are expected to achieve a better performance,” it said.

In the third quarter ended Dec 31, IJM posted a higher net profit of RM100.4mil against RM74.8mil a year ago.

Revenue for the period was 40% higher at RM1.47bil from RM1.1bil a year prior while earnings per share climbed to 2.86 sen versus 2.13 sen last year.

For the nine-month period, it posted a net profit of RM294.7mil on revenue of RM4.16bil.