IJM Corp’s 3Q18 net profit boosted by property, infrastructure incomes

By ALIFAH ZAINUDDIN / Pic By MUHD AMIN NAHARUL

IJM Corp Bhd’s net profit for its third quarter ended Dec 31, 2018 (3Q18), was marginally higher at RM93.42 million against RM93.39 million it registered a year ago, lifted by improved earnings from its property development and infrastructure divisions.

This was achieved despite a decline in its operating revenue to RM1.51 billion, which fell 2.7% from RM1.55 billion it posted in the corresponding period in the previous year, dragged by lower income from the group’s construction, manufacturing and quarrying, as well as plantation divisions.

For the cumulative nine-month period, IJM’s net profit stood 45.8% lower at RM178.11 million compared to RM328.79 million over the same period last year. Overall revenue also declined 7.6% year-on-year to RM4.26 billion from RM4.61 billion.

The group expects its current financial year to continue to be challenging. Its construction division is expected to end on a satisfactory note, based on an outstanding orderbook of RM8.4 billion.

It said the local property market will remain challenging due to key issues of price affordability, overhang of high-priced properties, rising costs of living and tight financial arrangements.

However, with unbilled sales of about RM2.2 billion, the division is expected to maintain a satisfactory performance in the current financial year.

IJM expects lower performances from its industry and plantation divisions, given the difficult operation environment both domestically and overseas.

The group’s toll and port operations will continue to provide recurrent revenue streams as existing concessions mature. This is expected to further enhance its infrastructure division’s earnings.