Core instructions: You are a senior blogger, and your task is to directly output the content based on the uploaded company quarterly report
Convert this report into a format suitable for English blog HTML writing.
IJM Corporation’s Latest Quarterly Report: Navigating Growth Amidst Global Headwinds
IJM Corporation Berhad, a diversified Malaysian conglomerate with a strong presence in construction, property development, manufacturing, and infrastructure, has just released its unaudited quarterly report for the financial period ended 31 March 2025. This report offers a comprehensive look into the company’s performance, revealing a mixed landscape of robust segmental growth alongside challenges from one-off items and broader macroeconomic uncertainties. For Malaysian retail investors, understanding these nuances is key to appreciating IJM’s strategic positioning and future trajectory.
Key Takeaway: While IJM Corporation demonstrated commendable revenue growth for both the quarter and the full financial year, its reported profit figures were significantly impacted by specific non-recurring items. Delving deeper reveals a strong underlying operational performance, particularly in its Construction and Industry divisions, complemented by a consistent dividend declaration.
Core Financial Highlights: A Deeper Dive Beyond the Headlines
At first glance, the headline profit figures might raise eyebrows, but a closer examination reveals a more nuanced picture. Let’s break down the core numbers:
Current Quarter (4Q FY2025)
Revenue: RM1,791.5 million (up 1.8% from 4Q FY2024)
Profit Before Taxation (PBT): RM257.4 million (down 29.8% from 4Q FY2024)
Net Profit Attributable to Owners: RM129.0 million (down 57.8% from 4Q FY2024)
Basic Earnings Per Share: 3.68 sen (down from 8.71 sen in 4Q FY2024)
Preceding Year Quarter (4Q FY2024)
Revenue: RM1,759.2 million
Profit Before Taxation (PBT): RM366.8 million
Net Profit Attributable to Owners: RM305.5 million
Basic Earnings Per Share: 8.71 sen
Full Financial Year (FY2025)
Revenue: RM6,252.0 million (up 5.6% from FY2024)
Profit Before Taxation (PBT): RM791.1 million (down 18.0% from FY2024)
Net Profit Attributable to Owners: RM403.4 million (down 32.8% from FY2024)
Basic Earnings Per Share: 11.50 sen (down from 17.11 sen in FY2024)
Preceding Year to Date (FY2024)
Revenue: RM5,918.8 million
Profit Before Taxation (PBT): RM964.2 million
Net Profit Attributable to Owners: RM600.3 million
Basic Earnings Per Share: 17.11 sen
The report explicitly highlights that the decline in pre-tax profits was primarily due to one-off items. For the fourth quarter, a RM54.0 million expected credit loss related to West Coast Expressway (WCE) was recognized, contrasting sharply with the prior year’s recognition of a RM67.0 million fair value gain on WCE Holdings Berhad (WCEHB) warrants and a RM78.6 million reversal of impairment of a financial asset. Excluding these one-off effects, IJM’s pre-tax profit for 4Q FY2025 would have *increased* by 40.8% to RM311.4 million, showcasing robust underlying operational improvements.
Similarly, for the full financial year, the PBT decline was also attributed to these one-off items, along with unrealized foreign exchange losses of RM42.1 million and fair value losses on WCEHB warrants of RM26.6 million in FY2025. Without these, the Group’s full-year pre-tax profit would have increased by 15.9% to RM913.7 million.
Segmental Performance: The Engines of Growth
Understanding IJM’s performance requires a look at its diverse business units:
| Operating Segment | 4Q FY2025 PBT (RM’000) | 4Q FY2024 PBT (RM’000) | Change (%) | FY2025 PBT (RM’000) | FY2024 PBT (RM’000) | Change (%) |
|---|---|---|---|---|---|---|
| Construction | 41,400 | (1,493) | +2872.9% | 113,129 | 36,809 | +207.3% |
| Property Development | 118,621 | 111,059 | +6.8% | 359,336 | 390,966 | -8.1% |
| Manufacturing & Quarrying | 55,148 | 47,684 | +15.7% | 190,729 | 181,789 | +4.9% |
| Infrastructure – Toll | (859) | 77,238 | -101.1% | (86) | 128,308 | -100.1% |
| Infrastructure – Port | 31,457 | 49,004 | -35.8% | 125,527 | 151,387 | -17.1% |
| Investment & Others | 11,616 | 83,307 | -86.1% | 2,429 | 74,910 | -96.8% |
The Construction division truly shone, with pre-tax profit soaring by 207.3% for the full year, driven by higher construction activities and a robust order book. This demonstrates the division’s strong execution capabilities.
Property Development saw a slight increase in 4Q PBT due to cost savings, but full-year figures were down, mainly due to lower sales from delayed launches. However, the division boasts a healthy unbilled sales pipeline of approximately RM1.54 billion, providing future revenue visibility.
The Manufacturing & Quarrying division delivered a record pre-tax profit of RM190.7 million for FY2025, a 4.9% increase, thanks to improved operating efficiency despite a slight dip in revenue from lower product tonnage.
The Infrastructure – Toll division faced significant headwinds, reporting losses for both the quarter and full year. This was primarily due to the impairment of RM54.0 million in West Coast Expressway’s Redeemable Unsecured Murabahah Stocks and higher share of losses from associates, coupled with lower traffic volumes from an expired overseas toll concession.
Similarly, the Infrastructure – Port division experienced a decline in both revenue and pre-tax profit, attributed to lower cargo throughput. The Investment & Others segment also saw a substantial drop in profit, mainly due to the fair value changes of WCEHB warrants.
Financial Health and Dividends
IJM’s balance sheet remains robust. As at 31 March 2025, Net Assets per Share stood at RM2.93, a slight increase from RM2.91 at the preceding financial year-end. Total assets grew to RM21.77 billion. The company’s cash and bank balances were RM2.45 billion, providing a strong liquidity position despite a slight decrease from the prior year. Total borrowings stood at approximately RM5.84 billion (RM1.88 billion short-term and RM3.96 billion long-term).
In a positive signal to shareholders, IJM Corporation declared a single-tier second interim dividend and a special dividend of 5 sen and 1 sen per share respectively for FY2025, totaling 6 sen, to be paid on 18 July 2025. This brings the total dividend for FY2025 to 8 sen per share, consistent with the previous financial year, demonstrating the company’s commitment to shareholder returns.
Risk and Prospect Analysis: Navigating a Shifting Landscape
The report acknowledges the prevailing global uncertainties and trade tensions, which have led the IMF and World Bank to reduce Malaysia’s 2025 GDP growth forecasts to 4.1% and 3.9% respectively. Despite this cautious macroeconomic outlook, IJM Corporation expresses confidence in delivering a satisfactory operational performance for the new financial year.
- Construction: With a substantial order book of RM7.6 billion (including joint ventures and associates), this division is poised for continued growth, focusing on timely execution and strategic order book replenishment.
- Property Development: Leveraging its strategically located properties and strong brand reputation, coupled with RM1.54 billion in unbilled sales, the division anticipates a reasonable performance.
- Industry (Manufacturing & Quarrying): A strong order book and the ongoing rollout of data centers and large-scale infrastructure projects are expected to sustain this division’s strong performance.
- Infrastructure – Toll: Existing mature concessions will continue to provide steady revenue, while two other highways are in their gestation periods, promising future contributions.
- Infrastructure – Port: The outlook for the Port business remains cautious, primarily due to global trade tensions and uncertainties impacting cargo throughput.
Summary and Outlook
IJM Corporation’s latest quarterly report paints a picture of resilience and strategic adaptation. While headline profits were affected by specific non-recurring financial adjustments, the underlying operational performance, especially in the Construction and Industry divisions, remains robust. The company’s consistent dividend payout further underscores its financial stability and commitment to shareholders.
Looking ahead, IJM is well-positioned to capitalize on its strong order books and strategic initiatives across its core segments, even as it navigates a cautious global economic environment. The focus on timely project execution, cost efficiency, and strategic investments (such as the recent acquisition of JRL Group Holdings Limited and properties in the UK) indicates a proactive approach to growth.
Key areas to watch for future developments include:
- The impact of global trade tensions on the Port division’s performance.
- The successful execution and contribution from the substantial Construction order book.
- Progress in the gestation periods of the new toll highway concessions.
- The realization of revenue from the Property division’s unbilled sales.
- Further strategic acquisitions or joint ventures that could bolster future earnings.
From a senior blogger’s perspective, IJM Corporation’s ability to maintain revenue growth and deliver strong underlying operational results, despite significant one-off impacts on its reported profits, speaks volumes about its core business strength. The management’s confidence in achieving a “satisfactory operational performance” for the new financial year, against a backdrop of global uncertainties, suggests a well-thought-out strategy and a focus on execution.
Do you think IJM Corporation can maintain this growth momentum and overcome the external challenges in the coming years? Share your thoughts in the comment section below!
(You might also be interested in: [Link to related article 1], [Link to related article 2])
