This article first appeared in The Edge Financial Daily on May 30, 2019

KUALA LUMPUR: IJM Corp Bhd closed its financial year 2019 with a 13 times jump in quarterly earnings on significantly stronger contributions from almost all divisions — in particular infrastructure — except investments and others.

The group's net profit for the fourth quarter ended March 31, 2019 (4QFY19) jumped to RM240.81 million from RM17.86 million, as its infrastructure division swung to a profit before tax (PBT) of RM171.44 million from a pre-tax loss of RM19.53 million previously, on improved contributions from its local toll and port concessions, with its investment in a toll concession in Argentina also boosting the division.

Its strong 4Q was also buoyed by better earnings from its property development division (PBT up 60.5% or RM70.02 million), construction (up 48.6% to RM61.95 million), manufacturing and quarrying (up 11.2% to RM14.81 million), and plantation (returned to the black with a PBT of RM16.72 million from a pre-tax loss of RM3.79 million) divisions.

This resulted in its 4QFY19 earnings per share rising to 6.64 sen from 0.49 sen a year ago. Revenue rose 2.9% to RM1.39 billion from RM1.36 billion a year ago.

IJM Corp declared a second interim dividend of two sen per share, to be paid on July 19, bringing the total payout for the year to four sen from six sen last year, its stock exchange filing showed.

For its full FY19 ended March 31, IJM Corp's net profit grew 20.85% to RM418.92 million from RM346.65 million in FY18, lifted by its property development and infrastructure divisions, despite revenue retreating 5.2% to RM5.66 billion from RM5.97 billion.

Going forward, it expects its construction division to perform satisfactorily, based on an outstanding order book of RM7.8 billion, underpinned by the expected implementation of ongoing projects.

While it expects the domestic property market to remain challenging, it said its property development division will maintain a satisfactory performance in the coming year. The division currently has unbilled sales of about RM2.1 billion.

Its industry division is also expected to maintain its performance despite the competitive operating environment locally and abroad. Its plantation division will continue to be challenged by prevailing low commodity prices and volatile foreign exchange rates amid continued cost pressures from wage increases and higher cost of fertilisers and fuel.