PETALING JAYA: IJM Corp Bhd’s net profit jumped three times to RM70.1 million for the second quarter ended Sept 30, 2019 from RM21.92 million in the previous corresponding period, attributed to improved earnings of its property development, manufacturing & quarrying, plantation and infrastructure divisions.
Revenue for the period rose by 20.2% to RM1.57 billion from RM1.31 billion previously.
The group has declared an interim dividend of 2 sen per share to be paid out on Dec 27.
According to the group’s Bursa filing, the construction business’ pretax profit for the quarter remained almost unchanged.
The property development division, however, reported a 69.7% surge in pretax profit on the back of higher sales recorded and the completion of some development projects for the period.
The manufacturing & quarrying segment’s pre-tax profit grew 11.5% due to improved margins recorded by the piles and ready-mixed concrete sectors.
The plantation business recorded a lower pre-tax losses in the period mainly attributed to its net foreign exchange gains in the current quarter against losses of RM22.6 million reported previously, following the strengthening of the Indonesian rupiah against the US dollar.
Meanwhile, group’s infrastructure business saw pre-tax profit climb to RM35.2 million from RM8.5 million as a result of higher contributions from its local tolls and port concession and lower net unrealised foreigned exchange losses.
For the six-month period, IJM posted a net profit of RM129.53 million, a 53% jump from RM84.68 million reported in the same period a year ago, with revenue rising 13.2% to RM3.12 billion from RM2.75 billion.
Looking ahead, IJM said its construction business will remain vigilant and cautious to preserve its earnings whilst focusing on the execution and timely completion of its existing order book of RM5.1 billion.
The property development division is expected to maintain a satisfactory performance in the current financial year due to its strategic locations and brand premium that has been established and given the potential conversion of unbilled sales of about RM1.9 billion.
On the other hand, the group’s industry division expects a challenging year due to the competitive operating environment and it will continue its mitigation efforts towards the improvement of product quality, cost and process efficiency.
The plantation business expects commodity price levels and anticipated better crop production in the second half of the year to contribute to an improved performance.
IJM expects its infrastructure division to provide recurrent revenue streams as existing concessions mature.
source https://www.thesundaily.my/business/ijm-corp-posts-threefold-increase-in-q2-earnings-BI1659560
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