IJM

Re: IJM

Postby winston » Sat Jul 13, 2019 7:51 am

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RHB Research upgrades IJM to Buy, TP RM2.78

RHB Research is upbeat on the growth trajectory of throughput volume at Kuantan Port in 2019

KUALA LUMPUR: RHB Research has upgraded IJM Corp to Buy from Neutral with new sum-of-parts based target price of RM2.78 from RM1.91, 18% upside plus 3% yield.

It said on Friday this comes on improved visibility in terms of securing new construction orders, a possible upward revision in new property sales for FY20F, the possible disposal of its toll road assets at fair value thus giving rise to the possibility of special dividends; and robust growth expectations for Kuantan Port.

“We expect earnings to grow at a CAGR of 9.7% during FY20F-22F,” it said.

RHB Research said while the loss of the contract dealt a blow to IJM – the RM1.1bil contract formed 14% of its RM7.8bil outstanding orderbook – it is not entirely detrimental to the company, in its view.

For starters, the contract was likely to be scaled-down significantly anyway – by more than 30% based on its estimates, if it had remained.

Meanwhile, minimal work and investments pertaining to the contract were done. Seen positively, uncertainties on the outcome of negotiations regarding IJM’s LRT3 contract have not been lifted.

“The share price correction, albeit shallow, could present investors who missed out on IJM’s impressive YTD rally with an opportunity to purchase its shares,” it said.

RHB Research expects construction revenue to increase at a CAGR of 5% during FY20F-22F (Mar). This is underpinned by an ex-LRT3 outstanding orderbook of RM6.7bil.

Looking forward, it is forecasting PBT margins to normalise at 8-10%. This should be achievable given IJM’s expertise in building design and build works, highways, and rail-related infrastructure.

Management is turning more aggressive in FY20, guiding for a RM2bil new orderbook replenishment target – a significant increase over FY19, where it secured a single contract worth RM500mil.

“Following the Ministry of Finance’s offer to acquire LDP, SPRINT, KESAS and SMART for MYR6.2bn, IJM’s toll assets could be next, in our view. In particular, the Besraya and Lekas highways could be crucial targets, as both currently receive compensation from the Government for deferring toll rate hikes.

“The NPE highway, should also be an ideal acquisition target, as it has a high average daily traffic figure (>200,000 vehicles), hence reducing traffic users’ financial burden.

“It is also profitable, registering FY18 PBT of RM94mil. Based on our estimate, the equity value of these three toll assets (Besraya, Lekas & NPE) could amount to RM2.46bil. This translates to 68 sen a share, and could be used to pay special dividends.

“Better performance expected for Kuantan Port. 3M19 throughput volume rose 61% from 4m FWT to 6.5m FWT. Throughput volume in 2019 is on track to grow at a healthy pace, as 3M19 volume made up 36% of 2018’s volume.

“We are upbeat on the growth trajectory of throughput volume at Kuantan Port in 2019, forecasting throughput volume of 23.5m FWT, +15% YoY growth. This is premised on improved activity at Malaysia-China Kuantan Industrial Park (MCKIP), the lifting of moratorium on bauxite mining, and increased activity in preparation for the East Coast Rail Link (ECRL),” it said.

Source: The Star

https://www.thestar.com.my/business/bus ... IvLjzhp.99
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Re: IJM

Postby winston » Tue Sep 08, 2020 4:31 pm

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STRATEGY:

ACCUMULATE (TECHNICAL)

The downtrend ended following a reversal off the major low as well as the creation of a new
higher low structure.

Given the stock has established a new base right above the 13-day SMA line and a bullish
reading in both the RSI and DeTrend, we expect further recovery ahead.

Source: Maybank
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Re: IJM

Postby winston » Tue Sep 08, 2020 4:41 pm

Bargain valuations

1QFY21 earnings below expectations

Orderbook on stronger ground, Phase 2 award of Light City by year end

Valuations at 0.5x BV too cheap to ignore – even below recent March lows

BUY with lower SOP-based TP of RM2.20

Three of its divisions were in the red – property, manufacturing and infrastructure.


Source: DBS

https://researchwise.dbsvresearch.com/R ... =fgijgkiia
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Re: IJM

Postby winston » Tue Sep 08, 2020 4:50 pm

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June 29, 2020

IJM Corporation (IJM MK)
FY20: Above Expectations


The property and infrastructure segments contributed positively to FY19 earnings.

We expect earnings to normalise in the coming quarters (from high base in 4QFY20) following the delivery of 2/3 of sold units of The Mint UK and with the impact of the MCO which has been affecting all of its businesses.

Separately, the roll-out of the ECRL would benefit the deep-water port business in the long run and IJM’s ability to clinch ECRL contracts would benefit IJM as well.

Maintain HOLD and target price of RM1.60.
Entry price: RM1.45.

Source: UOBKH

https://research.uobkayhian.com/content ... 13e8923a03
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Re: IJM

Postby winston » Tue Jul 19, 2022 11:01 am

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IJM Corporation (IJM MK)
In a position of strength


Maintain BUY with a revised TP

We maintain our BUY call on IJM with a revised TP of MYR2.14 (+9sen) on updating for latest financials and rolling forward valuation.

Catalysts are major orderbook wins and positive asset monetisation, while key risk to
earnings is volatility in material prices.

That said, we believe its MYR6.6b outstanding construction orderbook and unbilled property sales, and concession assets which are on post-pandemic recovery will provide the support.

Positively too, its strong balance sheet puts it in a position of strength for major orderbook replenishment and in driving LT growth

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/270110.pdf
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Re: IJM

Postby winston » Wed Oct 19, 2022 3:02 pm

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Sizeable contract wins
Maintain BUY


IJM’s recent job wins have lifted its outstanding construction order book by 16% to MYR4.6b, providing visibility beyond FY24.

We maintain our earnings forecasts, having already imputed job wins in our model.

No change too, to our MYR2.14 RNAV-TP and BUY call.

IJM’s strong balance sheet (0.26x net gearing) puts it in a position of strength for major orderbook replenishment and in driving long-term growth.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/284823.pdf
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Re: IJM

Postby winston » Fri Feb 24, 2023 8:35 pm

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IJM could secure additional RM1.6 bil worth of new wins in 4QFY2023, says CGS-CIMB

by Surin Murugiah

Softer construction earnings were due to weaker billings for new projects but offset by higher pretax margin for property development.

The group’s new contracts target of RM3 billion for FY2023F is intact.

Key targeted projects are:
1) additional scope for the East Coast Rail Line, ECRL;
2) government/private sector building contracts;
3) new tenders in India; and
4) MRT 3 (Circle Line), for which it tendered for all three civil works packages (estimate at RM3 billion to RM13 billion each).

“Total 9MFY2023 outstanding order book stood at RM4.6 billion. Separately, we gathered that the group’s highway restructuring proposal for Besraya Highway, Lekas Highway and New Pantai Expressway remains in play and could regain traction in the coming months, following the retabling of Budget 2023.


Source: theedgemarkets.com

https://www.theedgemarkets.com/node/656608
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Re: IJM

Postby winston » Mon Feb 27, 2023 11:57 am

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IJM Corp Bhd
Job flow could pick up pace post 3QFY23


9MFY3/23 results were broadly in line, with strong core net profit growth.

Softer construction earnings were due to weaker billings for new projects but offset by higher pretax margin for property development.

Maintain Add rating with unchanged TP (10% discount to RNAV).

Contract flow outlook could improve following retabling of Budget 2023.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... D7C1EEC676
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