KUCHING: Ibraco Bhd has delivered impressive earnings, with group net profit soared to RM30.5 million in second quarter ended June 30, 2025 (2Q2025) as compared to RM6.24 million a year ago in tandem with group revenue, which more than doubled to RM193 million from RM94.43 million.
All the group’s business segments reported expanded revenue during the same period.
The strong earnings lifted the company’s earnings per share to 5.59sen from 1.14sen.
The company has declared a 2sen per share interim dividend, same as 2Q2024.
In the current quarter under review, the property development segment generated sharply higher sales of RM76.89 million (2Q2024:RM52.38 million) while the construction works segment performed even better, with its revenue climbed to RM144.2 million (RM93.2 million).
The quarry operation segment saw its revenue more than doubled to RM5.68 million (RM2.31 million) whereas the manufacturing segment also reported significant increase in revenue to RM4.67 million (RM2.41 million).
On operational profit, the property development segment pre-tax profit ballooned to RM25.1 million (RM4.96 million) while the construction works segment pre-tax profit surged to RM12.35 million (RM4.34 million).
The quarry operation segment returned to the black with pretax profit of RM429,000 (-RM319,000).
But the manufacturing segment fell into the red with pre-tax loss of RM1.05 million (+RM37,000).
The 2Q2025 financial results also came in much stronger than the immediate precedent quarter (1Q2025) when group net profit was RM13.55 million (2Q2025:RM30.5 million) although revenue growth was moderate at RM193.1 million (RM184.1 million).
The revenue growth was mainly driven by the property development segment which saw its sales rose by RM13.1 million to RM76.89 million from RM63.84 million in the preceding quarter. In the January-June 2025 period (6M2025), Ibraco turned in stronger earnings with net profit of RM44.1 million (6M2024:RM11.53 million) in line with group revenue which more than doubled to RM377.1 million (RM174.57 million).
“The group revenue for 6M2025 increased by 116 per cent to RM377.1 million, up from RM174.57 million in 6M2024.
This increase was largely driven by the construction segment, which grew from RM63.4 million in 6M2024 to RM213.45 million in 6M2025.
“Furthermore, this growth was also supported by the property segment, which reported revenue of RM140.73 million in 6M2025 as compared to RM94.54 million in 6M2024.
“Other income increased to RM21.39 million compared to RM1.61 million in 6M2024.
The significant increase in other income was due to compensation in respect of land to be resumed by the government under the existing Land Code.
The composition of the remaining other income remained consistent with that of the corresponding period,” Ibraco said in explanatory notes to its financial results.
On prospects, Ibraco said in the second half of 2025, the group is expanding further into the light industrial sector to meet the rising demand for scalable and adaptable industrial spaces.
“Leveraging 23.1 acres of strategically located land with the established Demat Laut Industrial Zone, the group offers flexible configurations tailored to the needs of small and mediumsized enterprises (SMEs), logistics providers and light manufacturers,” it added.
On property development, Ibraco said the group monitors the market demand for its products, and adopts a prudent approach with respect to new launches.
“With extensive experience in developing townships that enhance marketability, coupled with economic normalisation and vibrant social activities, we are confident in achieving satisfactory take-up rate of these developments and future launches.” Ibraco’s current flagship development is the NorthBank project which spans 123 acres.
Ibraco said in the construction sector, the group continues to actively bid for government’s construction and infrastructure projects to strengthen its source of income amidst the current property market sentiment.
The group’s on-going construction projects include part of the Second Trunk Road in Samarahan Division and infrastructure works from Rembus to Stutong for Kuching Urban Transportation System.
Following its expansion into the building and construction value chain, the group now runs a ready-mixed concrete plant with an annual capacity of 120,000 tonnes, and a new asphalt mixing plant which commenced operations five months ago.
The group also owns and operates a mild steel cementlined pipe with an annual capacity of 30,000 tonnes.
The group’s investment in the building and construction value chain is to enhance the efficiency and progress of its core activities in realty development and construction. Ibraco group’s second quarry reserve at Gunung Sinmajau is expected to start operation in second half of this year, with an annual capacity of 1.2 million tonnes.
The group’s first quarry plant in Pulau Salak currently produces aggregates of granites with an annual capacity of 600,000 tonnes.
