KUALA LUMPUR (May 26): IJM Corp Bhd has proposed a bonus issue of up to 1.79 billion new ordinary shares of RM1.00 each on the basis of one bonus share for every one existing IJM share (1:1) held by entitled shareholders, to be credited at an entitlement date to be determined later.

In a statement, IJM Corp said the proposed bonus issue, to be completed by third quarter of this year, is to reward existing shareholders while the larger capital base will allow for improved trading liquidity.

Meanwhile, IJM Corp Bhd posted a net profit of RM98.27 million or 6.57 sen per share in the fourth quarter ended March 31, 2015 (4QFY15), over ten times the RM8.24 million or 0.58 sen per share it achieved a year earlier.
 

It also proposed a second interim dividend of 11 sen for FY15, payable July 9, 2015. This brings its total FY15 dividend to 15 sen, lower than its FY14 dividend of 25 sen.  

Quarterly revenue, however, dropped 12.6% to RM1.44 billion from RM1.65 billion previously.

For the full FY15, the group posted net profit of RM480.94 million or 32.63 sen per share, down 42% from RM829.6 million or 59.06 sen per share in FY14, its filing to Bursa Malaysia showed.

It said the lower FY15 profit was due to the one-off gains recorded in the preceding year such as fair value gains and remeasurement gains on the acquisition of additional equity interests in CIDB Inventures Sdn Bhd, Swarna Tollway Sdn Bhd and Radiant Pillar Sdn Bhd, and the capital gain on the disposal of its Kemaman port assets.

FY15 revenue fell 9.29% to RM5.45 billion from RM6.01 billion in FY14, following a decrease in revenue from the construction division.

IJM Corp managing director cum chief executive officer Datuk Soam Heng Choon said the group is encouraged by the development spending identified under the 11th Malaysia Plan and continues to see compelling growth opportunities across its core business divisions.

IJM Corp (fundamental: 1.1; valuation: 1.4)’s shares closed unchanged at RM6.97, for a market value of RM12.43 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. )