Latest news with #LeeChunFai
The Star
5 days ago
- Business
- The Star
IJM Corp upbeat about construction activity
IJM Corp group chief executive officer and managing director Datuk Lee Chun Fai. PETALING JAYA: IJM Corp Bhd is confident of delivering satisfactory operational performance for the financial year ending March 31, 2026 (FY26). In a statement, group chief executive officer and managing director Datuk Lee Chun Fai said the group's RM7.6bil outstanding order book would be complemented by a further RM3.5bil from its 50% acquisition of JRL Group post the financial year-end, strengthening its construction capabilities and expanding our presence in the United Kingdom. 'Looking ahead, IJM Corp is well-positioned to benefit from national growth priorities such as infrastructure investment, the development of special economic zones in Johor and the rising demand for digital infrastructure.' For the fourth quarter ended March 31, 2025 (4Q25), IJM Corp's net profit dipped to RM128.95mil from RM305.52mil in the previous corresponding period, while revenue rose to RM1.79bil from RM1.76bil a year earlier. For FY25, IJM Corp's net profit dropped to RM403.38mil from RM600.28mil in the previous corresponding period, while revenue grew to RM6.25bil from RM5.92bil previously. IJM Corp said the construction division remained the key revenue contributor, supported by a high level of construction activity, while the industry division continued to benefit from a strong order book and the ongoing rollout of data centres and infrastructure projects. The group's improving outlook is further supported by resilient property sales in FY25, sustained unbilled sales, and steadfast efforts to grow its business, backed by strategic locations of its developments and the strength of its established brand. The property division recorded RM1.5bil in sales for FY25, supported by unbilled sales of RM1.5bil. According to Lee, the group is also positioning its overseas property portfolio as a key engine for growth. 'The redevelopment of 25 Finsbury Circus presents a rare opportunity to transform a historic landmark into a modern, high-performance workspace. 'The building is undergoing a sustainability-led refurbishment that will increase its total footprint by 26%. 'Securing a 20-year lease with an international law firm enhances our recurring income profile and affirms the long-term potential of our UK property strategy,' Lee said. Additionally, IJM Corp said that Kuantan Port recorded lower cargo throughput in FY25, achieving 24.3 million tonnes. 'However, the long-term growth prospects for the port remain strong, underpinned by new foreign direct investments at the Malaysia-China Kuantan Industrial Park (MCKIP). 'The government's continued infrastructure investment in the region, particularly via the East Coast Rail Link, reinforces Kuantan Port's role as a strategic logistics and trade hub for the East Coast,' he said. As the port operator and infrastructure enabler, IJM Corp said it is well-positioned to benefit from the growing industrial activity and cargo throughput driven by MCKIP. Commenting on the group's FY25 performance, Lee said: 'Despite external headwinds, our results underscore the group's operational resilience and progress on key strategic fronts.' 'We remain focused on execution, strengthening fundamentals, and driving long-term growth across all business divisions,' he added.
The Star
5 days ago
- Business
- The Star
IJM Corp confident of delivering satisfactory operational performance
IJM Corp group chief executive officer and managing director Datuk Lee Chun Fai. PETALING JAYA: IJM Corp Bhd is confident it can deliver satisfactory operational performance for the financial year ending March 31, 2026 (FY26). In a statement, group chief executive officer and managing director Datuk Lee Chun Fai said the group's RM7.6bil outstanding order book will be complemented by a further RM3.5bil from its 50% acquisition of JRL Group post the financial year-end, strengthening its construction capabilities and expanding our presence in the UK. 'Looking ahead, IJM is well-positioned to benefit from national growth priorities such as infrastructure investment, the development of special economic zones in Johor and the rising demand for digital infrastructure.' For the fourth quarter ended March 31, 2025 (4Q25), IJM Corp's net profit dipped to RM128.95mil from RM305.52mil in the previous corresponding period, while revenue rose to RM1.79bil from RM1.76bil a year earlier. For FY25, IJM Corp's net profit dropped to RM403.38mil from RM600.28mil in the previous corresponding period, while revenue grew to RM6.25bil from RM5.92bil previously. IJM Corp said the construction division remained the key revenue contributor, supported by a higher level of construction activity, while the industry division continued to benefit from a strong order book and the ongoing rollout of data centres and infrastructure projects. 'The group's improving outlook is further supported by resilient property sales in FY25, sustained unbilled sales, and steadfast efforts to grow its business, backed by strategic locations of its developments and the strength of its established brand. The property division recorded RM1.5bil in sales for FY25, supported by unbilled sales of approximately RM1.5bil. Lee said the group is also positioning its overseas property portfolio as a key engine for growth. 'The redevelopment of 25 Finsbury Circus presents a rare opportunity to transform a historic landmark into a modern, high-performance workspace. 'The building is undergoing a sustainability-led refurbishment that will increase its total footprint by 26%. Securing a 20-year lease with an international law firm enhances our recurring income profile and affirms the long-term potential of our UK property strategy.' Additionally, IJM Corp said that Kuantan Port recorded lower cargo throughput in FY25, achieving 24.3 million tonnes. 'However, long-term growth prospects for the port remain strong, underpinned by new foreign direct investments at the Malaysia-China Kuantan Industrial Park (MCKIP). 'The Government's continued infrastructure investment in the region, particularly via the East Coast Rail Link, reinforces Kuantan Port's role as a strategic logistics and trade hub for the East Coast. As the port operator and infrastructure enabler, IJM Corp said it is well-positioned to benefit from the growing industrial activity and cargo throughput driven by MCKIP. Commenting on the group's FY25 performance, Lee said: "Despite external headwinds, our results underscore the group's operational resilience and progress on key strategic fronts.' 'We remain focused on execution, strengthening fundamentals, and driving long-term growth across all business divisions.'
New Straits Times
26-05-2025
- Business
- New Straits Times
NPE extension set to unlock RM5.6bil in economic benefits: analysts
KUALA LUMPUR: The long-anticipated New Pantai Expressway (NPE) extension is expected to generate RM5.6 billion in economic spillover benefits and catalyse development in the Bangsar fringe area. The NPE extension has received official approval from the Ministry of Works, signalling a major step forward in Kuala Lumpur's infrastructure upgrade under the Traffic Master Plan 2030. IJM Corp Bhd confirmed that the RM1.4 billion project—initially cancelled in 2012—has been revived through renewed government engagement. As a fully private initiative, IJM will fund the construction in full. Spanning 15 kilometres, the fully elevated highway will connect the Pantai Dalam Toll Plaza to the Jalan Istana interchange via Jalan Syed Putra. The extension will enhance traffic flow by integrating the NPE with the Besraya and the upcoming Laluan Istana Kiara Expressway (by Ekovest). The improved link is expected to divert up to 40 per cent of traffic from Jalan Bangsar into central Kuala Lumpur. IJM currently holds a 34-year concession (with about 12 years left before the extension) for the 19.6-km NPE, a key corridor connecting Subang Jaya to the capital, with major toll points including Pantai Dalam, PJS2, and PJS5, as well as the Kuchai Link and Pantai Sentral Park interchange. The NPE was constructed between 2000 and 2004, with the expressway officially opening to traffic on April 30, 2004. The project was led by Road Builder (M) Holdings Bhd, which was acquired by IJM in 2007. Datuk Lee Chun Fai, IJM's group chief executive officer and managing director, said the approval marks a key milestone in the group's ongoing efforts to improve urban mobility throughout the Klang Valley. Other than NPE, IJM also wholly owns Besraya (M) Sdn Bhd, whose concession to operate the 28.9km Sungai Besi Highway ends in 2046 (previously 2040 before toll restructuring in 2022); a 50 per cent stake in Lebuhraya Kajang-Seremban Sdn Bhd, which has a concession to run the 44.3km Kajang Seremban Highway (Lekas) through 2064 (previously 2039); and an effective 41 per cent shareholding in the 233km West Coast Expressway Sdn Bhd, which is 80 per cent controlled by publicly traded WCE Holdings Bhd. IJM has a 26.65 per cent stake in WCE, and its wholly owned Road Builder has a 20 per cent direct stake in the West Coast Expressway. It also has four highways in India: the 79km Chilakaluripet-Vijayawada Tollway; the 19.8km Dewas Bypass Tollway (under construction); the 109km Solapur-Bijapur Tollway (under construction); and the 56km Western Access Tollway in Buenos Aires, Argentina. Brokerages have responded positively to the news. CIMB Securities said the project will immediately contribute RM1.4 billion in internal contracts to IJM's construction division while reinforcing its strategy to grow toll infrastructure assets and recurring income streams. For the nine months ended December 31, 2024, IJM's toll segment reported a 58 per cent year-on-year decline in core pre-tax profit to RM27.1 million, impacted by RM53 million in associate losses. NPE and Besraya collectively posted RM96 million in pre-tax profit, a 7.2 per cent YoY decline. CIMB maintained its 'Buy' rating on IJM, with an unchanged sum-of-the-parts-based target price of RM3.26. It said the project's RM1.4 billion contribution is within its FY26F new contract win estimate of RM4 billion. However, it has not yet factored in earnings contributions from the expanded concession pending further updates. Public Investment Bank Bhd also reaffirmed its 'Buy' call and TP of RM3.26, echoing that the brownfield project fits well with IJM's long-term toll infrastructure strategy and would deliver meaningful recurring revenue. "We make no changes to our earnings forecast, as the expected order book accretion of RM1.4 billion from the NPE extension is within our new contract win estimates of RM4 billion for FY26F. "Similarly, we have not factored in any contributions from the expanded NPE concession pending further updates on its operational parameters."
New Straits Times
23-05-2025
- Business
- New Straits Times
IJM gets ministry's nod to extend New Pantai Expressway by 15km at RM1.4bil cost
KUALA LUMPUR: IJM Corporation Bhd has received approval from Works Ministry for the extension of the New Pantai Expressway (NPE) and restructuring of toll rates for the existing stretch. The project will be undertaken by IJM's infrastructure toll division, which manages the group's highway concessions. According to IJM, the 15-kilometre fully elevated NPE extension (including directional ramps) is designed to improve connectivity, ease congestion and enhance mobility across key corridors in Klang Valley. By offering a direct alternative to city-centre routes, the highway will help shorten travel times and ease daily commutes for residents and businesses. The NPE Extension, with a new toll plaza, will be fully funded by the concessionaire without any government funding. Construction works is expected to commence in the third quarter of 2025 with the highway targeted to be operational by 2029. Toll restructuring of the existing NPE entails maintaining current toll rates until the expiry of the concession period. Meanwhile, the NPE extension will link the Pantai Dalam toll plaza directly to the Jalan Istana interchange via Jalan Syed Putra, interconnecting with three major expressways - NPE, Sungai Besi Expressway (Besraya), and the upcoming Laluan Istana-Kiara Expressway (LIKE). The project also aligns with Kuala Lumpur Traffic Master Plan 2040, which prioritises highway-to-highway connections that keep through-traffic out of the city core. The integrated network is expected to divert about 40 per cent of existing traffic from Jalan Bangsar towards the city centre, relieving pressure on some of Kuala Lumpur's busiest routes which expect to reduce travel time during peak hours upon completion. IJM group chief executive officer and managing director Datuk Lee Chun Fai said the approval marks an important milestone in the group's efforts to improve urban mobility in the Klang Valley. He added that the NPE extension is designed not only to disperse traffic more efficiently, but also to reduce travel time and support the everyday journeys of people and businesses by easing pressure on key city routes and complementing public transportation. Beyond easing congestion, the project is also expected to generate economic spillover benefits of about RM5.6 billion, unlocking growth for nearby developments such as Pantai Sentral Park and Bangsar South. To support future-ready commuting, the NPE Extension will incorporate smart infrastructure features such as Malaysia's multi-lane fast flow tolling system, integrated real-time CCTV monitoring, smart street lighting and a new layby with electric vehicle fast-charging stations. The NPE Extension also represents a brownfield extension of the group's existing concession asset, aligning with IJM's strategy of expanding and enhancing its infrastructure portfolio through well-managed, synergistic developments. Lee noted that the extension of the NPE concession provides an ideal mechanism to responsibly finance and deliver this project. "The NPE Extension also strengthens our recurring income base and fits well within our long-term strategy of managing and monetising infrastructure assets at the right time," he said. The NPE Extension will be undertaken at a construction cost of RM1.4 billion.
Barnama
14-05-2025
- Business
- Barnama
IJM Allianz Duo Highway Challenge 2025 Targets 12,000 Runners
KUALA LUMPUR, May 14 (Bernama) -- The IJM Allianz Duo Highway Challenge aims to draw 12,000 runners for its seventh edition, scheduled for Aug 3 here. IJM Corporation Bhd group chief executive officer (CEO) and managing director Datuk Lee Chun Fai said the target follows last year's strong turnout of 10,000 participants. 'This is more than just a number. It reflects the spirit and community support the event has built,' he told reporters at the running event's launch here today.
