Strong construction demand drives Ibraco’s growth

KUCHING (Aug 25): Ibraco Bhd (Ibraco) reported a 17.8 per cent increase in revenue to RM94.43 million in the second quarter ended June 30, 2024 (2Q24), up from RM 80.14 million in the previous quarter (1Q24).

This growth was primarily driven by the property and construction segments, which experienced significant revenue increases: the property segment grew by 24.2 per cent from RM42.16 million in 1Q24 to RM52.38 million in 2Q24; while the construction segment saw a 22.5 per cent rise from RM28.50 million in 1Q24 to RM34.91 million in 2Q24.

This positive outcome is attributable to accelerated construction progress in both segments.

For 2Q24, the group reported a profit after tax (PAT) of RM6.5 million, reflecting a 16.1 per cent increase compared to RM5.6 million in 1Q24.

The property development segment remains the main contributor attributing 55.5 per cent of the group’s revenue followed by Construction segment at 37.0 per cent for the period under review.

The management of Ibraco commented, “We are pleased with our performance in 2Q24 and expect a further increase in construction project activity in the second half of 2024, as the challenges hindering construction progress have been addressed.

“In addition, the group is poised to unveil new commercial project at The NorthBank township and residential project at the new Arden City township.

“The strategic portfolio of these upcoming launches, with an estimated gross development value of RM447 million is set to ramp up the unbilled sales. Therefore, we are optimistic about our financial outlook for the rest of the financial year.”

“With a strong track record in diverse infrastructure projects, the group is well-positioned and is actively pursuing new government construction and infrastructure projects in Sarawak.”

As of June 30, 2024, the group’s unbilled sales and outstanding order book stood at RM194.67 million and RM1.11 billion respectively.