IJM

[winston]

not vested

Secures 1st data centre job in Johor
Positive development; maintain BUY

We are positive on IJM’s latest job win to construct a data centre in Iskandar Puteri, Johor as we believe IJM has the capabilities for high-tech industrial building construction jobs supported by its IBS and spun piles operations.

We maintain our earnings forecasts which have imputed job win assumptions.

Our RNAV-based TP of MYR3.30 is also unchanged. BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/389587.pdf

[winston]

not vested

More DC wins; Kuantan Port in a sweet spot

More data centre wins could follow; it is bidding for TM-Singtel DC in Johor.

We raise earnings and DCF forecasts for Kuantan Port, as it could benefit from ECRL completion at end-2026.

Reiterate Add with a higher TP of RM4.40.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 8FA2FB7A0E

[winston]

not vested

More DC wins; Kuantan Port in a sweet spot

More data centre wins could follow; it is bidding for TM-Singtel DC in Johor.

We raise earnings and DCF forecasts for Kuantan Port, as it could benefit from ECRL completion at end-2026.

Reiterate Add with a higher TP of RM4.40.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 39AA854FC7

[winston]

not vested

Reserving capacity for higher-margin DCs

IJM’s CEO was upbeat at our recent meeting, citing ample construction jobs.

It is reserving capacity for high-margin DCs and tying up with a Singapore operator to construct in Johor; new orders may exceed FY25F RM5bn target.

Reiterate Add and SOP-derived TP of RM4.40.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... A031F4C881

[winston]

More Contract Wins Rolling In

IJM announced that it has secured two new contracts, a data centre and E&E facility, worth RM561m.

After the contract wins, we upgrade our recommendation to BUY by ascribing an upcycle valuation to fairly reflect its growth prospects.

Note that the valuation recalibration is also aligned with the target we ascribed to large-cap construction players, following the coverage transfer.

Target price: RM3.65.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

1Q Results

Revenue: +17%; RM 1.4b
EPS: -21%; 2.48; RM 86m
Net Asset: 2.88

https://www.bursamalaysia.com/market_in ... id=3478057

[winston]

not vested

1QFY25: Slight shortfall

Raising TP; BUY maintained

IJM’s 1QFY25 net profit was just 16% of our FY forecast, 17% of consensus with the shortfall vis-à-vis our forecast due to a MYR20m FV loss on WCE warrants.

Excluding this and other smaller one-offs, 1QFY25 core profit was 20% of our FY; this is in-line in anticipation of stronger quarters ahead.

We make no change to our earnings forecasts for now.

Our RNAV-TP is raised to MYR3.70 (+40sen) as we roll forward valuations.

BUY maintained; IJM is poised to benefit from higher construction (positive for its industry ops too) and economic activities (positive for its port ops).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/402136.pdf

[winston]

not vested

IJM Corporation (IJM MK) 1QFY25: Slow And Steady

IJM’s 1QFY25 results broadly met expectations.

Property earnings came in understandably soft given limited launches in 1QFY25 whereas the construction segment saw a turnaround back into the black.

Looking forward, we anticipate property sales to pick up sequentially, in line with IJM’s target of RM2.2b in FY25.

However, we shift recognitions of property sales out slightly, lowering our earnings forecasts for FY25-27 by 3-5%.

Maintain BUY with a lower target price of RM3.60

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

vested

IJM Corp revenue rises 15% to RM1.4bil

Net profit fell 14% year-on-year (y-o-y) to RM86.9mil in its first quarter ended June 30, 2024 of financial year 2025 (1Q25), impacted by unrealised foreign-exchange losses.

The lower profit for the quarter under review was due to the higher unrealised foreign-exchange gains of RM41.7mil recorded in 1Q24 as opposed to unrealised foreign-exchange losses of RM1.4mil in 1Q25.

Fair value loss on WCE Holdings Bhd warrants of RM19.9mil in 1Q25.

For the construction segment, the group’s revenue and pre-tax profit for 1Q25 improved by 76% and 110.5%, respectively, as compared to 1Q24.

The property development division’s revenue for 1Q25 decreased marginally by 7.3%.

Lower deliveries of piles, quarry and ready mixed concrete products led to lower revenue for the manufacturing and quarrying segment which decreased by 12.7% in 1Q25.

Revenue and pre-tax profit for IJM Corp’s toll business in 1Q25 decreased by 13.8% and 38.1%, respectively, as compared with 1Q24.

Source: The Star

https://www.thestar.com.my/business/bus ... to-rm14bil

[winston]

vested

IJM Corporation - Bags RM561m Industrial Building Jobs

2024-08-20

IJM has secured two contracts to build namely:
(i) two data centres (DC) in Gelang Patah, Johor, and
(ii) an industrial manufacturing facility in Batu Kawan, Penang, worth RM561m in total.

This brings its YTD job wins to RM1.86b with an outstanding order book to RM7.9b.

As this is within our expectation, we keep our forecasts, TP of RM3.00 and MARKET PERFORM rating.

Source: Kenanga

https://klse.i3investor.com/web/priceta ... arch/72197