CEO Morning Brief

IJM Unit Lands RM654m Job to Build International Logistics Hub in Shah Alam

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Publish date: Tue, 27 Jun 2023, 08:40 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (June 26): IJM Construction Sdn Bhd, a wholly owned subsidiary of IJM Corp Bhd, has been awarded a RM653.6 million contract for the design, execution and construction of Phase 1 of the Shah Alam International Logistics Hub in Selangor.

The project, commissioned by Global Vision Logistics Sdn Bhd, will establish the country's first green-certified logistics hub, one of the largest in the Asean region, according to a statement on Monday (June 26).

IJM Corp also said in a bourse filing that Phase 1 of the project consists of a four-storey logistics hub, four-storey multi-level parking with a one-storey office and ancillary buildings.

Construction of the project on a 71-acre site in Persiaran Selangor, Seksyen 16, Shah Alam, Selangor will commence in the third quarter of this year, with a completion period of 26 months.

Upon completion of Phase 1 in 2025, the development will have a total net lettable area of 2.8 million sq ft.

The contract strengthened IJM Construction's outstanding order book to RM5.1 billion, comprising a mix of high-profile private and public sector projects in building construction and civil engineering, said the group.

IJM Corp also said none of the directors or major shareholders of the group, or persons connected with them, had any interest, direct or indirect, in the project.

For the financial year ended March 31, 2023 (FY2023), the group's net profit fell 78.9% to RM158.28 million, from RM794.89 million a year earlier. Revenue improved mildly to RM4.57 billion from RM4.41 billion. Dividend payout fell to eight sen, from 21 sen for FY2022.

"With the pandemic and labour supply constraints largely behind us, we are optimistic about the prospects of more construction jobs entering the market," group chief executive officer and managing director Lee Chun Fai said in a statement then.

IJM Corp shares closed unchanged at RM1.50 on Monday, giving the group a market capitalisation of RM5.47 billion. Year to date, its share price had declined by 4.46% from RM1.57 on Jan 3.

Source: TheEdge - 27 Jun 2023

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