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This adjustment accounts for earnings improvements arising from its non-core divisions, mainly from encouraging traffic and more sections opened at the West Coast Expressway, coupled with robust demand for its industrial products and recovery in Kuantan port throughputs on the back of an outstanding order book of RM6 billion.
The company’s net profit for the financial year ended March 31 (FY2024) rose fourfold to RM600.28 million from RM158.28 billion reported in the previous financial year, while revenue increased 29.4% to RM5.92 billion from RM4.57 billion.
For the fourth quarter (Q4 FY2024), IJM Corp’s net profit surged 10-fold to RM305.52 million from RM23.05 million posted in the same quarter last year while revenue advanced 32.6% to RM1.76 billion from RM1.33 billion previously.
The share price of IJM Corp was higher during the morning session after the construction and property company reported robust net profit results for FY2024.
At 10.17am, its shares gained 22 sen to RM2.76 with 9.94 million shares traded.
Meanwhile, Hong Leong Investment Bank Bhd (HLIB) said IJM ended FY2024 on an impressive note, reporting core profit after tax, amortisation, and minority interest (Patami) of RM504 million.
“Management revealed an ambitious contract (will) win target of RM5 billion for FY2025.
“The pipeline includes the Nusantara project, New Pantai Expressway extension, Indian highways, and Penang Light Rail Transit,” it said.
Therefore, HLIB has lifted IJM Corp’s FY2025 and FY2026 core Patami forecasts by 30.4% and 38.5%, respectively, after increasing construction replenishment and property sales assumptions to match guidance as well as higher contribution from industry and port.
HLIB maintained a ‘buy’ call for IJM Corp with a higher target price (TP) of RM2.90, up from RM2.38, while Public Investment Bank maintained an ‘outperform’ rating with a revised TP of RM2.80, up from RM2.46.
As at 12.30pm, IJM Corp’s share price was up by 25 sen or 9.84% to RM2.79 sen, giving the group a market capitalisation of RM10.18 billion.
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