IJM releases Financial Results for the year ended 31 March 2019
Full-year net profit improves 23.6%
|4Q FY19||4Q FY18||Change||
Profit Before Tax (PBT)
Profit after tax & MI
Basic earnings per share (sen)
- Current outstanding order book stands at RM7.8 billion, consisting of high quality prominent projects. IJM is well-positioned to meet the new construction landscape as the country is still in need of quality contractors with a proven execution track record and strong balance sheet to execute infrastructure projects vital to its economic growth agenda
- Seeing stable demand for property projects that are well-planned. Unbilledvproperty sales of RM2.1 billion provides healthy earnings visibility
- Increasing recurring income streams from the New Deep Water Terminal Phase 1A at Kuantan Port which commenced operations in 3QFY19 and the completion of Menara Prudential, Tun Razak Exchange
PETALING JAYA, 29 May 2019 - IJM Corporation Berhad (“IJM” or “the Group”) today released its financial results for the year ended 31 March 2019. For the quarter, the Group achieved an operating revenue of RM1,394.9 million, an increase of 2.9% over the same quarter last year, following higher revenues contributed by the Group’s Property, Plantation and Infrastructure divisions. The Group also recorded a pre-tax profit for the current quarter of RM313.6 million, an increase of 306.7% over the same quarter last year, mainly due to higher contributions from the Group’s Construction, Property, Industry, Plantation and Infrastructure divisions.
For the full year, the Group posted an operating revenue of RM5,655.7 million, a marginal decrease of 5.2% over last year, mainly due to lower revenues contributed by the Group’s Construction, Industry and Plantations divisions. The Group’s pre-tax profit for the current year stood at RM648.0 million, an increase of 6.0% compared to the preceding year, mainly due to higher earnings achieved by the Group’s Property and Infrastructure divisions.
Following the Group’s Construction Division considerable order book replenishment in FY2018, these newer projects have yet to reach optimal construction phase. This has resulted in the Construction division revenue this year declining by 14.9% to RM1,981.2 million compared to RM2,327.6 million last financial year.
The Property Division recorded 20.8% higher revenue at RM1,427.3 million compared to RM1,181.9 million in the previous year mainly due to higher sales recorded, higher work progress as well as the disposal of certain parcels of commercial land during the year.
Revenue of the Industry Division decreased by 16.2% to RM883.4 million due to lower sales volumes in the piles and quarrying sectors. The Infrastructure Division recorded revenue of RM732.2 million, an increase of 12.3% from last year, mainly arising from an expansion of cargo throughput handled by the Group’s port concession which grew by 20% compared to the previous year. The Group’s wholly-owned toll concessions in Malaysia also contributed to revenue growth year-on-year.
Revenue of the Plantation Division decreased by 15.6% to RM630.9 due to primarily to lower commodity prices.
For the financial year ended, pre-tax profit of the Construction Division decreased 21.2% to RM174.4 million as compared to RM221.2 million in the previous year following lower construction revenue as well as an unrealised forex loss of RM9.7 million in relation to US Dollar denominated borrowings in the current year as compared to an unrealised forex gain of RM10.8 million last year. Pre-tax profits for the Property Division increased by 67.4% to RM202.0 million as compared to RM120.7 million last year mainly due to the higher sales recorded and higher work progress as well as the sale of certain parcels of commercial land during the year.
The Industry Division saw a 28.5% decrease in its pre-tax profits to RM59.0 million due to lower sales volumes and margins in the piles and quarrying sectors. The Infrastructure Division reported an increase in pre-tax profit by 118.4% to RM268.3 million as compared to RM122.8 million in the previous year mainly due to higher contributions from the Group’s local tolls and port concessions as well as the toll concession investment in Argentina.
The pre-tax loss of RM43.3 million for the year recorded by the Plantation Division was mainly attributable to lower commodity prices, compounded by the production cost pressure in the Malaysian operations and also the increase in young mature areas in the Indonesian operations incurring full plantation maintenance costs and overhead set against the start-up crop yield. The Division’s results were also affected by the net unrealised forex loss of RM25.8 million on the US Dollar denominated borrowings for the current year as compared to the unrealised forex loss of RM23.7 million in the previous year.
Following the results, the Company declared a single tier second interim dividend of 2.0 sen per share. Coupled with the single tier first interim dividend of 2.0 sen per share, this brings the total dividend declared for the financial year ended 31 March 2019 to 4.0 sen per share. Dato’ Soam Heng Choon, Managing Director & CEO of IJM Corporation Berhad said: “We have a healthy outstanding order book of RM7.8 billion that comprises a good mix of private and public projects. This 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 and reputable contractors to execute its infrastructure needs.”
On the Group’s Property division outlook, Dato’ Soam added: “The property market has stabilised and we have achieved our sales target of RM1.6 billion for FY19. This is on the back of the positive response to our established townships in Bandar Rimbayu and Seremban 2 as well as attractive products catered to the mid-market such as Residensi Suria Pantai in Pantai Sentral Park, Austin Duta in Johor and 3 Residence in Penang. The Group’s Property division expects to sustain its performance on the back of unbilled sales of around RM2.1 billion.”
On Kuantan Port, Dato’ Soam elaborates: “Phase 1A of the New Deep Water Terminal has also commenced operations and has been successfully berthing vessels, typically carrying iron ore and coal meant for the newly commissioned Alliance Steel plant at the Malaysia China Kuantan Industrial Park.”
The Group also has a fast maturing Plantation land bank profile to provide FFB production growth in the next few years.
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About IJM Corporation Berhad
IJM Corporation Berhad (“IJM”), formed in 1983, is today one of Malaysia’s leading construction groups and is listed on Bursa Malaysia KLCI. Its business activities encompass construction, property development, manufacturing and quarrying, infrastructure concessions and plantations.
Headquartered in Selangor, its operations are located in 10 countries, with primary focus in Malaysia, India and Indonesia. The Group presently has a market capitalisation of around RM7 billion and as of March 2019, the Group employed around 4,600 employees and has total assets of RM23 billion.
The Group’s belief in a shared destiny with its employees remains pivotal to its growing success while its reputation for professionalism, performance and good governance is acknowledged by customers and investors alike from its numerous corporate and industry accolades. IJM is committed to ethical business conduct and subscribes to the principles of good corporate citizenship for sustainable growth and development.