KUALA LUMPUR (March 4) — IJM Corp Bhd reported stronger top-line performance for the first nine months of FY2026, even as profitability softened amid weaker property contributions and foreign exchange volatility.
The results were released as shareholders evaluate an RM11 billion conditional voluntary takeover proposal from Sunway Bhd at RM3.15 per share.
For the nine months ended Dec 31, 2025, IJM posted revenue of RM5.01 billion, up 12.4% from RM4.46 billion a year earlier, supported by a rebound in construction activity and steady performance from its manufacturing and quarrying operations.
However, profit before tax fell 33.6% year-on-year to RM354.2 million, compared with RM533.7 million previously. Net profit declined to RM187.2 million from RM335.2 million, while earnings per share eased to 5.05 sen from 7.83 sen.
Unrealised foreign exchange losses widened to RM103.2 million, reflecting currency movements during the period. Net asset value per share stood at RM2.89, slightly lower than RM2.93 recorded in FY2025. A first interim dividend of two sen per share was paid in January 2026.
Management attributed the earnings moderation to softer property sales and currency headwinds, despite operational improvements in other divisions.
The construction segment emerged as a key growth driver. Revenue surged 53.7% to RM2.65 billion, underpinned by stronger progress in infrastructure, industrial and data centre projects.
Third-quarter construction profit before tax rose sharply by 118.9% to RM42.5 million, signalling improved execution and margin recovery. Major ongoing works include large-scale industrial and infrastructure contracts, reinforcing IJM’s pivot towards fast-track developments.
The group’s construction order book remains robust at RM15.3 billion, providing medium-term earnings visibility and strengthening its exposure to infrastructure expansion under national development plans.
For investors focused on industrial land in Selangor and large-format developments, the expansion of industrial and data-driven projects is particularly relevant, as it supports ecosystem growth across logistics, manufacturing and technology clusters.
The industry and quarrying division recorded a 19% increase in revenue to RM925 million, supported by higher deliveries of construction materials such as piles and ready-mixed concrete.
In contrast, the property division saw revenue decline 36.1% to RM823 million and registered a pre-tax loss of RM7.7 million. The weaker showing was attributed to lower sales and ongoing holding costs related to long-term investment assets in both Malaysia and the UK.
Infrastructure performance was mixed, with port revenue declining due to temporary cargo volume reductions, while tollway operations posted improved profitability.
The property slowdown is notable for the Klang Valley market, where developers are recalibrating launches and focusing on inventory management. Demand for commercial property in KL and office space in Bukit Jalil remains selective, with buyers prioritising strategic locations and well-connected projects.
Under the proposed deal, Sunway is offering RM3.15 per IJM share through a combination of 32.5 sen cash and 0.501 new Sunway shares. The offer is conditional upon Sunway securing more than 50% of IJM’s voting shares, with the potential for compulsory acquisition if acceptances reach 90%.
Research houses are split in their recommendations. Some view the offer as fair, citing earnings uncertainty and forex exposure, while others believe IJM’s substantial order book and improving construction margins justify a higher standalone valuation.
Major institutional investors, including the Employees Provident Fund (EPF), which holds a significant stake, are expected to assess the Independent Advice Circular before declaring their position.
Group chief executive Datuk Lee Chun Fai emphasised disciplined execution and selective tendering, supported by digital project management tools and greater adoption of Industrialised Building Systems (IBS) to enhance productivity and manage labour costs.
This operational discipline is particularly relevant in Selangor’s industrial corridors, where efficient construction timelines directly impact supply of factory in Puchong developments and industrial property in Subang area expansions.
As infrastructure spending gains momentum, IJM’s positioning within construction and industrial segments could indirectly stimulate demand for industrial land in Selangor, while also supporting the broader ecosystem around commercial property in KL.
IJM’s near-term trajectory now depends largely on the outcome of the takeover proposal. Operationally, its construction and industrial arms are showing recovery momentum, while property and currency exposure remain short-term challenges.
For property investors in Kuala Lumpur and Selangor, particularly those focused on office space in Bukit Jalil and industrial assets across established zones, the group’s strategic direction will influence supply pipelines, infrastructure delivery and market confidence in the years ahead.
Whether shareholders opt for the RM3.15 exit or back IJM’s independent growth strategy will ultimately determine the next phase of the company’s evolution within Malaysia’s construction and property landscape.
Vietnam