KUALA LUMPUR (Aug 26): IJM Corporation Bhd’s net profit for the first quarter ended June 30, 2020 (1QFY21) came in at RM1.27 million, lower than the RM71.3 million reported in the preceding quarter (4QFY20) and RM59.42 million a year ago (1QFY20), as the group was impacted by the movement control order (MCO).

Its chief executive officer and managing director, Liew Hau Seng, said most of the group’s business segments had to adhere to a temporary suspension of operating activities due to MCO measures imposed by the government to contain the spread of the Covid-19 virus.

However, he noted that some of its businesses such as the group’s port, toll and plantation operations, which were classified as essential activities, were able to operate, albeit at subnormal capacities due to lower business activities and in adherence to new standard operating procedures.

Revenue was down 57% to RM879.8 million compared with RM2.05 billion in 4QFY20, and down 43% compared with RM1.54 billion in 1QFY20, as contributions fell across the group’s construction, property and infrastructure divisions.

The plantation segment, however, reported higher revenue thanks to higher crude palm oil prices and fresh fruit bunch production, supported by crop production recovery in the group’s Malaysian operations.

Nevertheless, Liew said the group has a healthy outstanding construction order book of RM5.5 billion, comprising a mix of private and public sector projects which will provide good earnings visibility for the group over the next few years.

“Recent job wins such as The Light City’s retail mall and convention centre, as well as TRX Residences are high quality projects that allow us to demonstrate our construction capabilities as well as our ability to introduce vibrant integrated property offerings into the market.

“IJM Land’s aim has always been to design the right product with the right pricing for the respective locations of its properties. Post-MCO, we have seen a decent take-up of mid-range properties priced between RM400,000 and RM900,000,” he said in a statement.

Liew said the group recently launched Phase 1 and 2 of Starling, consisting of 273 units in total with a combined gross development value of RM189.4 million at its Bandar Rimbayu project, and was fully booked within a day of their respective launches.

He added: “IJM Land has also been adapting its strategies to respond to the challenging financing landscape arising from the Covid-19 situation. Launched this month, IJM Land’s 'Now You Can' homeownership campaign introduces low interest rates, a savings plan, and high rewards to prospective homebuyers. Financial coverage is also provided in the event of a loss of employment or a pay cut, providing assurance to aspiring homebuyers.”

Moving forward, Liew said IJM Land’s strategies would also be highly flexible with customised plans and solutions to suit individual needs and requirements.

Shares of IJM have fallen some 43% over the course of the year. The stock closed one sen or 0.81% lower at RM1.23 today, valuing the group at RM4.47 billion.

Edited by S Kanagaraju