IJM Corp 2Q net profit up 4.8%, pays three sen dividend

KUALA LUMPUR (Nov 29): IJM Corp Bhd’s net profit rose 4.8% to RM163.9 million or 4.55 sen per share in the second financial quarter ended Sept 30, 2016 (2QFY17) from RM156.4 million or 4.38 sen per share a year ago.

Revenue grew 11% to RM1.49 billion in 2QFY17 from RM1.34 billion in 2QFY16.

In a filing with Bursa Malaysia yesterday, IJM said the improved performance was mainly due to higher contributions from the group’s construction, manufacturing & quarrying, plantation and infrastructure divisions that managed to compensate for the lower segmental contributions from its property and investment and other divisions.

IJM also declared a first interim dividend of three sen per share for FY17, payable on Dec 28, 2016.

For the first half ended Sept 30, 2016 (1HFY17), IJM’s net profit fell 43.4% to RM279.4 million from RM493.2 million in 1HFY16, mainly due to lower contributions from the group’s property development, manufacturing and quarrying and infrastructure divisions.

This was despite its revenue growing by 11% to RM2.8 billion from RM2.52 billion in 1HFY16.

In a separate statement yesterday, IJM chief executive officer and managing director Datuk Soam Heng Choon said the group’s prospects under the construction and industry divisions are underscored by strong current outstanding order book levels and further supported by the ongoing infrastructure spending identified by the 11th Malaysia Plan.

“The group is well-poised to expand the capacity of its concessions assets while its existing portfolio provides stable and predictable cash flow streams. The group also has a fast maturing plantation land bank profile to provide fresh fruit bunch production growth in the next few years,” he added.

This article first appeared in The Edge Financial Daily, on Nov 29, 2016. Subscribe to The Edge Financial Daily here.