IJM Corp Expects Better Performance For FY23
While 3Q segmental performance was mixed, with losses in its India toll roads due to forex losses, property sales have been on track to meet their MYR3bn ($713m) target, with sales totalling MYR2.4bn, and unbilled sales being MYR3.4bn.
IJM Corporation Bhd, a construction, property development, infrastructure, and industry company, has reported a 9MFY23 core net profit of MYR226m ($54m) and an increase in net profit of 65% YoY but it expects a better performance for the FY23.
Excluding unrealised forex losses from its India toll roads and other non-recurring items, core net profit was in line with analysts' forecasts, and the company has maintained its earnings estimates and its MYR2.14 RNAV-TP.
While 3Q segmental performance was mixed, with losses in its India toll roads due to forex losses, property sales have been on track to meet their MYR3bn ($713m) target, with sales totalling MYR2.4bn, and unbilled sales being MYR3.4bn.
Azam Saham
Additionally, management expects a better performance for FY23, and the industry operations are expected to contribute to the group's earnings delivery, says Maybank.
IJM Corporation Bhd is also a key supplier of spun piles, quarry, ready-mixed concrete, scaffolding products, and holds strategic concessions such as Kuantan Port, BESRAYA, and NPE.
The company's value proposition includes leading in construction and civil engineering, having built over 2,500km of roads, over 165km of railways, over MYR10bn of commercial and cultural buildings, and more.
The price drivers include a post GE14 overhang, the revival of the ECRL project, and the MCO. The medium-term earnings are supported by its outstanding construction order book of MYR4.6bn as of end-Oct 2022 and unbilled property sales of MYR3.4bn as of end-Oct 2022.
The company aims to replenish its construction job to MYR3bn and MYR3bn property sales, including land sales, in FY23. Its net gearing stood at 0.24x as of end-Dec 2022.
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