IJM unit secures RM1bil job from MFBBCC Retail Mall

PETALING JAYA: IJM Corp Bhd has clinched a construction job from MFBBCC Retail Mall Sdn Bhd worth RM1.16bil.

In a filing with Bursa Malaysia yesterday, it said its wholly owned subsidiary IJM Construction Sdn Bhd had accepted the letter of award from MFBBCC Retail Mall for the design and build of the retail mall substructure and superstructure works with associated local infrastructure and landscaping works (Parcel 1, Phase 1 of the Bukit Bintang City Centre Development) at Jalan Hang Tuah/Jalan Pudu, Kuala Lumpur.

The construction period of the project is 40 months.

The project included one block of seven-storey retail mall with one level of lower ground and one level of mechanical room on top of a six-level car park.

In a separate announcement, IJM reported a decline in its net profit for the third quarter ended Dec 31, 2016 to RM138.3mil from RM256.1mil a year ago despite a higher revenue.

Revenue came in at RM1.59bil compared with RM1.43bil in 2015.

The group’s profit decline was due to the non-recurrence of a one-off gain from the disposal of a 70% equity interest in Swarna Tollway Pvt Ltd totalling RM133.3mil recognised last year, as well as a lower contribution from the plantation division and the group’s port operations.

For the nine-month period, IJM’s net profit also registered a decrease to RM417.8mil from RM749.3mil in the same period last year.

“The group’s prospects under the construction and industry divisions are supported by strong current outstanding order book levels, and will continue to benefit from the ongoing infrastructure spending identified by the 11th Malaysia Plan.” It is well-positioned to expand the capacity of its concession assets, while its existing portfolio provides stable and predictable cash-flow streams.

It also has a fast maturing plantation land bank profile to provide fresh fruit bunch production growth in the next few years.