- IJM Corporation’s 3Q16 earnings jumped 85.8 percent to RM256.1 million boosted by higher contributions from the group’s construction, plantation and infrastructure divisions and a one-off gain from the sale of its stake in Swarna Tollway.
- For the nine-month period, net profit surged 95.8 percent to RM749.4 million despite a 1.1 percent decline in revenue to RM3,961.1 million due to lower revenue from the firm’s property and plantation divisions.
- Continued traffic growth in the group’s Malaysian toll road concessions as well as higher cargo revenue boosted performance in the infrastructure division. On the other hand, plantation earnings fell due to lower commodity prices and sales volume.
Significance: In a separate note, BIMB Securities Research has upgraded the stock to ‘Buy’, with a higher target price of RM3.82, as it believe that sentiment is now back to normal for the group’s construction and concession segments to reflect its fundamental value.