Ibraco confident of hitting RM350 million FY25 sales target

KUCHING (Dec 9): Ibraco Bhd (Ibraco) remains confident it will meet its RM350 million full year sales target for financial year 2025 (FY25) as strong demand continues across ongoing projects.

In a note on Monday, TA Securities reiterated management’s expectations for earnings momentum to extend into the fourth quarter (4QFY25) as construction progress accelerates across key infrastructure projects.

To recap, for the first nine months of FY25 (9MFY25), the property developer recorded a net profit of RM57.3 million and surpassed FY24’s full year earnings of RM48.8 million.

Core net profit rose 43 per cent year on year to RM38.3 million due to higher contributions from the property development and construction divisions.

TA Securities said its property sales more than doubled to RM289 million in 9MFY25, driven by strong demand for strata titled shops at NorthBank Kuching.

More than 90 per cent of the units have been sold, supported by a gross development value of RM124 million and steady take up across ongoing projects in Sarawak and the Klang Valley.

In addition, the group’s maiden industrial project, PrimeBay Industrial Park in Demak Laut with a gross development value of RM154 million, was launched in August 2025 and has achieved a 30 per cent take up rate and is expected to support 4QFY25 sales.

“With 9MFY25 sales accounting for 83 per cent of management’s RM350 million full year target, management remains confident of meeting the goal. Unbilled sales of RM360 million as at end-September 2025 provide solid earnings visibility into FY26.

“With operating momentum intact, FY25 is shaping up to be a record year, and management did not rule out a higher dividend payout,” it said.

Meanwhile, for FY26, despite planning more than RM700 million worth of new launches, management guided for a flattish sales target as it anticipates slower take up for upcoming commercial and serviced apartment projects, particularly at the NorthBank Business Exchange.

The research house noted that Ibraco’s outstanding construction order book of RM794 million provides earnings visibility through FY27.

Key projects include the ART project, the Second Trunk Road at Samarahan and the New Operators Residence 2 at Bakun. It said these projects are progressing on schedule and will underpin construction revenue over the next two years.

The group did not secure new contracts in FY25 but management said it has received a letter of intent for a sizeable government quarters project. The project is under design and is expected to be formally awarded in early FY26.

At the same time, the group remains active in tendering with a tender book of around RM900 million, mainly for infrastructure projects. This excludes the Kuching Urban Transportation System Green Line valued at about RM1 billion and the government quarters project.

“Backed by a strong execution record in large-scale infrastructure works, the group is well positioned to capitalise on Sarawak’s accelerating development drive toward achieving developed state status by 2030,” it added.