Stronger 3Q for IJM Corp

PETALING JAYA: IJM Corp Bhd is anticipating its construction division to stage a better performance for the financial year ending March 31, 2025 (FY25), on the back of its RM6bil order book.

The group said for the year-to-date FY25, the division had secured work amounting to RM2.7bil from data centres, electrical and electronics manufacturing facilities and logistics warehouse projects.

Releasing its results for the third quarter ended Dec 31, 2024 (3Q25) yesterday, IJM Corp saw its net profit climb 12.9% year-on-year (y-o-y) to RM113.3mil on the back of a 4.4% growth in revenue to RM1.54bil.

Cumulatively over the nine months up to December (9M25) however, net earnings slid 6.9% y-o-y to RM274.4mil, in spite of a 7.2% increase in revenue to RM4.46bil.

On the lower 9M25 net profit, IJM Corp attributed it to unrealised foreign exchange (forex) losses of RM73.4mil during the period against forex gains of RM27mil in the corresponding period a year before.

In addition, it said in a filing with Bursa Malaysia that it had recognised fair value losses on WCE Holdings Bhd warrants of RM8mil and RM26.5mil in 3Q25 and 9M25 respectively.

Compared with the preceding quarter ended Sept 30, 2024 net profit rose 52.7% from RM74.2mil, although turnover had been consistent, principally due to the recognition of profit arising from the sale of a parcel of land in Penang in 3Q25, which was partially negated by lower profit contribution from the group’s other business units.

IJM Corp did not propose any dividends for 3Q25, having declared a two sen per share dividend in 2Q25.

The group said its property division remains steadfast in its efforts to grow its business in view of the strategic locations of its properties and the brand premium that it has established.

“Barring the unfavourable forex effects, the property division is expected to maintain a satisfactory performance for the current financial year on the back of its unbilled sales of about RM1.6bil,” it said.

At the same time, the group’s industry division is expecting another year of solid performance on the back of its healthy order book and the promising outlook for industrial buildings, data centres and semiconductor manufacturing facilities.

The toll division, meanwhile, is anticipated to continue to provide the group with recurrent revenue streams via its existing mature concessions whilst its newer highways are undergoing gestation periods.

On its port business, it is expecting a challenging last quarter in tandem with weaker steel exports.

Overall, it is anticipating to record a satisfactory operational performance for FY25. IJM Corp closed 12 sen higher, or 5.69%, to settle at RM2.23 at the end of yesterday’s trading session.