IJM Land's 3Q earnings dip 1.7% to RM94.24 mil

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KUALA LUMPUR (Feb 27): IJM Land Bhd saw its net profit decreased marginally by 1.7% to RM94.24 million or 6.05 sen a share in the third quarter ended Dec 31, 2014 (3QFY15), despite revenue risen 7.3% to RM503.27 million.

In a statement, the property developer said its on-going projects which contributed to the higher revenue achieved during the quarter, include Bandar Rimbayu and Shah Alam 2 developments in Selangor, S2 Heights and Seri Binjai developments in Negeri Sembilan, as well as Vertiq, The Address and The Light Collection III developments in Penang.

In the nine months to Dec 31, 2014, IJM Land’s net profit decreased 10.3% to RM241.47 million or 15.49 sen a share, while revenue increased marginally by 6.27% to RM1.44 billion.

The group said local property market continued to face headwinds, caused by the cooling measures implemented by Bank Negara Malaysia, as well as negative consumer sentiments due to the “wait and see” attitude ahead of the Goods and Services Tax (GST) to be implement on April 1, 2015.

Nonetheless, the group said it is still expected to deliver a satisfactory performance for the current financial year, on the back of strong un-billed sales and the wide array of strategically-located projects.

IJM Land (fundamental: 2.2; valuation: 1.8) closed two sen or 0.54% higher at RM3.70, with a market capitalisation of RM5.86 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.)