Key highlights:

• Revenue decreased by 18.1% to RM1.31 billion
• If not for (i) losses accrued for the disposal of the remaining 30% of Swarna Tollway Pvt Ltd of RM37.5 million; (ii) net unrealised foreign exchange losses of RM33.5 million; and (iii) RM10.8 million unrealised foreign exchange losses incurred by the Plantation division classified under Finance Cost, Core PBT for 2QFY19 would have been RM117.7 million
• Current outstanding order book of RM8.8 billion. IJM is well-positioned to meet the new construction landscape as the country is still in need of quality contractors with a strong execution track record to execute its infrastructure ambitions to cater to its economic growth
• Unbilled property sales of RM2.0 billion

PETALING JAYA, 26 November 2018 – IJM Corporation Berhad (“IJM”) today released its financial results for the second quarter ended 30 September 2018. Group consolidated revenue stood at RM1,309.2 million, representing a decrease of 18.1% from RM1,599.0 million reported in the same quarter a year ago following lower revenues contributed by the Group’s Construction, Property, Industry and Plantations divisions. The Group recorded a profit before tax (“PBT”) of RM35.8 million as compared to RM183.9 million in the corresponding quarter last year due to lower earnings from the Construction, Property, Industry, Plantation and Infrastructure divisions. The decrease in PBT was further compounded by a net unrealised foreign exchange loss of RM44.3 million in the current quarter as compared to a loss of RM9.5 million in the corresponding quarter of the preceding year.

For the quarter, the revenue of IJM’s Construction division decreased by 21.5% to RM530.0 million as overall construction progress slowed down whilst newer projects have yet to reach the optimal construction phase.

The Property division reported a decrease in revenue by 5.3%, to RM255.6 million as compared to the same quarter in the previous year on the back of lower sales recorded.

The Industry division recorded 26.4% less revenue at RM220.2 million mainly due to lower sales volumes in the piles and quarrying sectors.

Revenue of the Group’s Plantation division saw a decline of 28.7% against the previous year’s corresponding quarter to RM140.1 million mainly due to lower CPO sales volume and commodity prices.

The Infrastructure division, however, recorded a mild increase in revenue of 3.5% to RM163.0 million, mainly attributable to an increase in contribution from the Group’s toll concessions.

Quarterly PBT of the Construction division decreased by 45.8% to RM38.5 million as compared to the previous year’s corresponding quarter mainly due to lower construction margins as well as an increase in unrealised forex losses of RM6.7 million in the quarter against RM0.4 million in the same quarter last year.

Pre-tax profit of the Property division decreased by 32.4% to RM21.9 million as compared to the same quarter last year due to lower sales coupled with lower margins.

The Industry division saw a 41.4% decrease in its pre-tax profits to RM16.1 million due to lower margins caused by higher raw material prices as well as lower volumes in the piles and quarrying sectors.

The Plantation division reported a loss before tax of RM31.7 million this quarter as compared to a PBT of RM13.3 million in the same quarter last year mainly due to lower commodity prices and higher production costs from the increase in young mature areas in the division’s Indonesian operations incurring full fixed plantation maintenance and overhead costs set against the start-up crop yield. This was compounded by net unrealised foreign exchange losses of RM22.6 million on US dollar denominated borrowings as compared to RM8.5 million in the same quarter in the previous year.

PBT of the Infrastructure division decreased to RM8.5 million from RM35.7 million recorded in the same quarter last year mainly due to losses being accrued for the disposal of the remaining 30% equity interests in Swarna Tollway Private Limited in the current quarter. The losses were mitigated by higher contribution from the Group’s toll concessions although the division reported net unrealised foreign exchange losses of RM20.3 million for the current quarter compared to losses of RM3.4 million in the previous year’s corresponding quarter.

Dato’ Soam Heng Choon, Managing Director & CEO of IJM Corporation Berhad said: “Our construction business has a good mix of private and public projects. The RM3.8 billion order book wins in the last financial year – that include an LRT3 package, Vijayapura-Solapur Tollway concession in India and quality Grade A office tower projects such as the new HSBC Malaysia headquarters, UOB Tower 2 and Uptown 8 office towers – as well as the newly secured Affin Bank headquarters in Tun Razak Exchange are still at early stages of construction and are expected to contribute significantly over the next few years.”

“Our outstanding order book is at a near-record high of RM8.8 billion, which provides earnings visibility over the next few years. Going forward, IJM will be well-poised to meet the new construction landscape as the country is still in need of quality contractors to execute its infrastructure ambitions,” he added.

On the Group’s property division outlook, Dato’ Soam said: “The Group’s Property division expects to sustain its performance on the back of unbilled sales of around RM2.0 billion and have attractive products in the launch pipeline such as Residensi Suria Pantai in Pantai Sentral Park, Swans in Bandar Rimbayu, Ara Impian in Seremban 2 and Austin Duta (Phase 7) in Johor.

About IJM Corporation Berhad

IJM Corporation Berhad (“IJM”), formed in 1983, today ranks as one of Malaysia’s leading conglomerates with an international footprint forged by its four core businesses: construction, property development, industry (quarrying and the manufacture of building materials) and infrastructure concessions. IJM holds leading positions across all its business divisions. Its growth is the direct result of strong leadership, dedicated employees, financial prudence and commitment to good governance and quality.

The Group presently has a market capitalisation of around RM9.56 billion and as of June 2025, the Group employed around 3,600 employees and had total assets of RM22.3 billion.

For more information, visit www.ijm.com