Remisier note

$IJM / 3336 (IJM CORPORATION BERHAD)

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IJM briefing on 20 Mar 2025 (IJM MK, BUY, CP: MYR1.93, TP: MYR3.35)

Dato’ Lee Chun Fai

Online allegations

Allegations are baseless. Fundamentals are intact. IJM firmly denies the malicious allegations circulating online. MRT3 was an open and competitive tender with major local and foreign contractors.

MRT 3 tender closed in Sep 2022. Was tendering for all packages. Tender process was conducted transparently. Project has been deferred anyway.

Almost all of orderbook were won with open tenders. Do not expect online allegations to affect tenderbook. Internal audit does not report to CEO but to audit committee chairman. Confident proper controls are in place.

Mr. Liew Hau Seng retired in 2023 on his own volition. Just wanted to retire early. Board of directors accepted his decision to retire early.

Lodged a formal report with MCMC and mulling legal actions. Have not been contacted by authorities. Whoever is involved may have to take sabbatical.

Tan Sri Krishnan Tan is now in a non-executive position. Occasionally interacts with Indian partners. Member of Malaysia-India Business Council. Not active in other of IJM’s businesses.

Nusantara project

Was in Indonesia. Met Pak Basuki (Head of The Nusantara Capital City Authority). Push for Nusantara still progressing. Indonesia was doing market sounding to develop Nusantara with 60 parties.

Feasibility study with Ministry of Finance right now. If no other bidders, IJM can proceed. Will take 3 to 6 months. Has taken longer than expected.
NPE extension

Have concluded negotiations with government. Should hear quite soon from government. Going through due process like cabinet deliberation. IJM shouldering capex while users pay for it.

Data centres

Submitted 2 hyperscale tenders. Working on another 4. Hope to secure 1 or 2 tenders. Pitching IBS facilities to win data centre tenders. Competing with 4 to 5 competitors.

Royal Mint Garden/Finsbury Circus acquisition

Royal Mint Garden. Phase 1 done. Working on Phase 2. Royal Mint Garden to be sold and become an associate. Finsbury an investment property. Acquisition inspired by Gamuda’s London Wall?

Finsbury has a client who is interested to lease 60% of net lettable area. This is a 5-year game plan. May have plans to sell parts of it. Tied to Innova project.

Looking at another 12 sites in London. Goes back to buying 50% of JRL. JRL helping with supply chain. Targeting MYR2.0b assets to buy and sell in London over 5 years.

Buy backs

Did some yesterday. Will continue to do so if believe shares are cheap.