Ijm Corporation Berhad

Remisier note

$IJM / 3336 (IJM CORPORATION BERHAD)

-

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.

Titan Trading Notes For Monday [24/3/2025]:

KLCI had a slight rebound back towards the 1505 points region with an overall mixed market sentiment on Friday as we had over 510 counters closing red for the day. Daily trading volume settled around the 3.4 billion mark, which is just average for now.

Main stocks that showed strong buying momentum would be the likes of GAMUDA, IJM, CIMB, ECOWLD, VS, SALIRAN, AUMAS, and RHBBANK. All of which were able to sustain their rallies throughout the day on the top volumes list.

$IJM / 3336 (IJM CORPORATION BERHAD) since retracing all the way back towards the RM 1.86+ support levels last week, been able to hold support well and bounced back towards the RM 2.04+ regions with good volume and buying momentum here.

So far after clearing its allegations, seems to be absorbing the selling pressure within the RM 1.85 - RM 2 support level range. In order for us to expect more, will need it to breakout from its RM 2.20+ resistance levels in the coming week to signal a further rebound.

Will be monitoring IJM closely.

SALIRAN since its earlier IPO debut over the past 2 weeks, been consolidating around the RM 0.20+ support levels and since then, been slowly recovering back up towards the RM 0.255 regions on Friday with good volume.

Seems to have found its bottom already and if able to sustain above its RM 0.24+ immediate support level, could breakout back towards and beyond its RM 0.275+ major resistance levels soon in the coming weeks.

Will be monitoring SALIRAN closely.

Sharing from remisier

♨️ Fresh From Oven ♨️

Trump Scraps Biden’s Sweeping AI Order in Regulatory Reset

(Bloomberg) -- President Donald Trump rescinded the Biden administration’s sweeping executive order regulating artificial intelligence, marking a significant shift in federal oversight for the rapidly advancing technology.

The move, announced on Monday, immediately halts the implementation of key safety and transparency requirements for AI developers. Biden’s mandate, which was signed in 2023, had required leading artificial intelligence companies to share safety test results and other critical information for powerful AI systems with the federal government. It also prompted the creation of the US AI Safety Institute, housed under the Commerce Department, to create voluntary guidelines and best practices for the technology’s use.

Trump didn’t immediately say exactly what would replace the order, but the administration is likely to take a more hands-off approach. Before returning to the White House, Trump had criticized Biden’s AI regulations as heavy-handed and hindering tech innovation. Trump also appointed David Sacks, a venture capitalist and longtime critic of tech regulation, as his crypto-AI czar.

With the repeal, Trump has thrown the future of US AI policy into question at a time when other countries are jockeying to set rules of the road for the disruptive technology. Last year, the European Union passed the AI Act, perhaps the most comprehensive guardrails for AI to date. The rules ban facial recognition and require strict oversight for “high-risk” AI used in sectors like healthcare and law enforcement, among other efforts.

To recap:

The Executive Order is guided by eight principles and priorities:

1. AI must be safe and secure by requiring robust, reliable, repeatable and standardized evaluations of AI systems, as well as policies, institutions, and, as appropriate, mechanisms to test, understand, and mitigate risks from these systems before they are put to use.

2. The US should promote responsible innovation, competition and collaboration via investments in education, training, R&D and capacity while addressing intellectual property rights questions and stopping unlawful collusion and monopoly over key assets and technologies.

3. The responsible development and use of AI require a commitment to supporting American workers though education and job training and understanding the impact of AI on the labor force and workers’ rights.

4. AI policies must be consistent with the advancement of equity and civil rights.

5. The interests of Americans who increasingly use, interact with, or purchase AI and AI-enabled products in their daily lives must be protected.

6. Americans’ privacy and civil liberties must be protected by ensuring that the collection, use and retention of data is lawful, secure and promotes privacy.

7. It is important to manage the risks from the federal government’s own use of AI and increase its internal capacity to regulate, govern and support responsible use of AI to deliver better results for Americans.

8. The federal government should lead the way to global societal, economic and technological progress including by engaging with international partners to develop a framework to manage AI risks, unlock AI’s potential for good and promote a common approach to shared challenges.

To clarify, this is not the framework of Interim Final Rule on AI Diffusion

🧠 Our thoughts 🧠

👀 are on the directive of the disruptive Interim Final Rule on AI Diffusion under Trump's administration now - which crushed MY market past 1 week.

To recap, following the release of this framework, sharp correction were seen across BM Construction Index (-10%), followed by BM Property (-4%) and BM Utilities (-2%) indexes.

While the framework casts uncertainties on Malaysia’s AI/DC growth narrative (given its Tier-2 categorisation, it is likely to be subjected to export caps and licensing requirements), we still keeping our view that the impact is confined only to selective companies with most data centre (DC) exposure, particularly those to AI GPU servers

And this, will be the game changer if it happens - with the framework’s 120-day comment period which provides room for reassessment, we see a plausible scenario where the widely condemned framework could be recalibrated given Trump’s pro-business policies.

So if this materialises whether the framework is being rescinded or recalibrated (our baseline hope), lists as below could see its fortune flipped to the Lady Fortuna 💃🏻

$NATGATE / 0270 (NATIONGATE HOLDINGS BERHAD)
$IJM / 3336 (IJM CORPORATION BERHAD)
$SUNCON / 5263 (SUNWAY CONSTRUCTION GROUP BERHAD)

$IJM / 3336 (IJM CORPORATION BERHAD)
Research by CGSI

槟城轻快铁90亿工程待瓜分

备受瞩目的槟城轻快铁终于启动，在金务大（GAMUDA，5398，主板建筑股）持股60%的SRS财团正式委任成总承包商之后，还有90亿的合约大蛋糕，等待我国各大建筑企业瓜分。

根据财经周刊《TheEdge》报道，一些大型建筑公司已将目光投入槟城轻快铁项目剩余未完成的工程。

据了解，出席捷运机构（MRT Corp）简报会的，除了有金务大，还有马矿业工程私人有限公司、马资源（MRCB，1651，主板产业股）、WCT控股（WCT，9679，主板建筑股）、睦兴旺（MUHIBAH，5703，主板建筑股）、以及Pestech国际（PESTECH，5219，主板工业股）收购方Dhaya Maju（亚洲）私人有限公司等。

至于双威建筑（SUNCON，5263，主板建筑股）和IJM（IJM，3336，主板建筑股）也出席了简报会，但这两家公司更倾向于槟岛和北海中环车站之间跨海连接的土木工程。

值得注意的是，双威建筑和IJM原先就参与了第一次的竞标活动，但最终由金务大赢得。

成功置地（BJLAND，4219，主板消费股）的子公司成功铁路（Berjaya Rail）也是新晋者之一，但目前还未承包任何项目。

一位消息人士透露，现在的重点是系统工程，包括机车车辆，估计合约价值40亿令吉，而投标者需要在4月14日之前提交提案。

至于跨海链接工程，估计价值50亿令吉，预计今年第三季展开招标活动。

槟城轻快铁整个项目单程长35公里，系统包分为两类，一个是信号、轨道、和列车供应（Cat 1），另一个则是电源和电信系统（Cat 2）。

另一位消息人士透露，由于信号和列车工程属于外国公司领域，因此捷运公司允许Cat 1竞标者拥有高达49%的外资合作伙伴。

消息人士补充道，赢得Cat 1合约的公司，将与Cat 2的中标者，共同合作完成项目。

Source: 南洋商报

$GAMUDA / 5398 (GAMUDA BERHAD)
$IJM / 3336 (IJM CORPORATION BERHAD)
$WCT / 9679 (WCT HOLDINGS BERHAD)

$IJM / 3336 (IJM CORPORATION BERHAD)
Research Report by TA

$IJM / 3336 (IJM CORPORATION BERHAD)
Research Report by PBIV

$IJM / 3336 (IJM CORPORATION BERHAD)
Research Report by MAYBANK

$IJM / 3336 (IJM CORPORATION BERHAD)
Research Report by KENANGA

$IJM / 3336 (IJM CORPORATION BERHAD)
Research Report by HLIB

$IJM / 3336 (IJM CORPORATION BERHAD)
Research Report by CGSI

$IJM / 3336 (IJM CORPORATION BERHAD)
Research Report by TA

$IJM / 3336 (IJM CORPORATION BERHAD)
Research Report by RHB

$IJM / 3336 (IJM CORPORATION BERHAD)
Research Report by PBIV

*IBs Budget 2025 Reports Summary*

*Report Titles*:
- *HLIB*: A Mixed Budget Bag
- *Kenanga*: No Sashimi, No Biggie
- *MIDF*: Turning Fiscally Conservative
- *Affin Hwang*: Moving Towards Fiscal Responsibility
- *TA Securities*: Pragmatic Budget to Sustain Economic Resilience
- *UOBKH*: Embraced Stricter Fiscal Consolidation
- *CIMB*: New Dividend Tax
- *Phillip*: Building Stronger Foundations
- *RHB*: Revitalising The Economy, Driving Transformation, Advancing Public Well-Being
- *Maybank*: Fortifying MADANI Economy
------------
*Overall Tone*:
- *HLIB*: Cautiously positive, with a focus on fiscal consolidation but concerned about higher costs and new taxes.
- *Kenanga*: Cautiously optimistic, appreciating the government's focus on fiscal discipline and green initiatives.
- *MIDF*: Balanced, highlighting the government’s fiscal prudence and continued support for key sectors.
- *Affin Hwang*: Cautiously positive, reflecting optimism for long-term fiscal consolidation, tempered by concerns over subsidy rationalization and higher wage costs.
- *TA Securities*: Positive, viewing the budget as pragmatic and focused on sustaining economic resilience.
- *UOBKH*: Neutral to slightly negative, noting stricter fiscal discipline but modest expansionary measures that set the foundation for sustainable growth.
- *CIMB*: Neutral to slightly negative, due to new taxes on dividends and increased labor costs for certain sectors.
- *Phillip*: Neutral, with a cautious outlook and minimal excitement for equities.
- *RHB*: Neutral to slightly positive, highlighting fiscal discipline, subsidy rationalization, and key infrastructure investments.
- *Maybank*: Positive on fiscal consolidation and pro-growth, with no major surprises for businesses.
------------
*KLCI Target*:
- *HLIB*: 1,700 (no revision)
- *Kenanga*: 1,760 (no revision)
- *MIDF*: 1,750 (no revision)
- *Affin Hwang*: 1,730 (no revision)
- *TA Securities*: 1,690 (no revision)
- *UOBKH*: 1,735 (no revision)
- *CIMB*: 1,732 (no revision)
- *Phillip*: 1,700 (no revision)
- *RHB*: 1,700 (no revision)
- *Maybank*: 1,720 (2024 no revision), 1,840 (2025 no revision)
------------
*Winners*:
- *HLIB*: Construction (Gamuda, IJM), consumer (AEON, PADINI), ESG (Solarvest, Samaiden), REITs (SunREIT).
- *Kenanga*: Consumer (MR DIY, AEON, Padini), ESG (BURSA, SLVEST), property (Mah Sing), construction (Gamuda).
- *MIDF*: Construction, consumer, healthcare, renewable energy sectors.
- *Affin Hwang*: Construction (Gamuda, IJM), consumer (MR D.I.Y.), ESG sectors (SLVEST, Press Metal).
- *TA Securities*: Construction (Gamuda, IJM), consumer (AEON, PADINI), healthcare (Duopharma, KPJ), insurance.
- *UOBKH*: Consumer (Mr DIY, 99 Speedmart), construction (flood mitigation projects, Penang LRT), and green/ESG sectors (carbon tax).
- *CIMB*: Construction, healthcare, property, and gaming sectors.
- *Phillip*: Technology, gaming (GENM), renewable energy (Solarvest, PEKAT), EMS (NationGate), and healthcare (KPJ).
- *RHB*: Construction (Gamuda, Sunway Construction), property (Sime Darby Property, Mah Sing), consumer (Mr DIY), and REITs (omission of luxury goods tax).
- *Maybank*: Construction (Penang LRT, East Malaysia projects), property (JSSEZ, Forest City), consumer (B40 benefit from subsidies), renewable energy (solar, carbon initiatives), aviation, gaming.
------------
*Losers*:
- *HLIB*: Labor-intensive sectors like EMS and gloves due to wage cost pressures.
- *Kenanga*: Tech and glove sectors due to higher labor costs.
- *MIDF*: Labor-intensive industries facing challenges with subsidy rationalization.
- *Affin Hwang*: Labor-intensive industries like plantations and technology may face margin pressures due to wage increases and upcoming carbon taxes.
- *TA Securities*: Labor-intensive sectors like plantations and manufacturing due to wage hike pressures.
- *UOBKH*: Labor-intensive sectors (plantations, technology) and steel, iron, and energy sectors (carbon tax impact in 2026).
- *CIMB*: Plantation, technology, and rubber glove sectors due to higher minimum wage and foreign worker costs.
- *Phillip*: EMS, plantation, and manufacturing sectors face challenges from labor costs.
- *RHB*: Utilities (TNB, Malakoff, PetGas, and MISC due to carbon tax), Oil & gas (PetDag on targeted subsidy of RON95), plantation (higher foreign worker levies), and technology sectors facing cost pressures from higher labor costs.
- *Maybank*: Technology (OSAT and EMS face margin compression from labor costs), plantation (higher labor cost), oil & gas (potential capex deferrals).

$GAMUDA / 5398 (GAMUDA BERHAD) $IJM / 3336 (IJM CORPORATION BERHAD) $AEON / 6599 (AEON CO. (M) BHD) $MRDIY / 5296 (MR D.I.Y. GROUP) $SLVEST / 0215 (SOLARVEST HOLDINGS BERHAD)

$IJM / 3336 (IJM CORPORATION BERHAD)
Research by Maybank
BUY – TP RM 3.70

"ESG 2.0: Progress in data collection & reporting”

We review IJM’s ESG matters post the release of its FY24 Annual & Corporate Governance Reports. Our ESG score for IJM is updated to 68 (out of 100) vs. 63 in our last review, above average. Positively, we see progress in data collection, advancement in governance structure, and detailed net zero commitments under its new Climate Strategy – R2O – introduced in Apr 2023. We maintain a BUY on IJM with a RNAV-based TP of MYR3.70

Analyst:
Wong Chew Hann
wchewh@maybank-ib.com

$IJM / 3336 (IJM CORPORATION BERHAD) -1QFY25

-Revenue grew by 14.6% YoY to RM1.4bn, driven by strong performance in the construction and port segments.

-Construction PBT surged by over 100% YoY due to increased activities and stable margins, with new order wins reaching RM1.9bn YTD and an outstanding order book of RM7bn.

-Kuantan Port also saw a significant PBT increase of 73.5% YoY, benefiting from higher cargo throughput, particularly in bauxite and silica sand.

-Property division saw a YoY PBT increase of 5% but experienced a QoQ decline, reflecting typical slow starts and lower work progress.

-The toll division was weaker YoY, impacted by lower traffic in India and the absence of compensation income in local toll roads.

-The company expects improved performance in the coming quarters, driven by ramped-up construction activities and potential new project wins, with a FY25 order target of RM5bn.

Outlook and Strategy:

-IJM is focused on the timely execution of its RM7bn order book and anticipates further job wins in infrastructure and data center projects.

-The company is reserving capacity for high-margin projects, particularly in data centers, while being selective with lower-margin tenders.

-Positive developments include the cancellation of a stake acquisition in Pestech, removing uncertainty over future earnings.

IJM Corporation Berhad is a solid company with a strong foundation in construction and infrastructure. Its diversified operations provide resilience, and there is significant growth potential, particularly in the construction and port segments. However, challenges in the property and toll segments need to be monitored, as they could weigh on overall performance. For investors, IJM presents a balanced mix of growth opportunities and risks, making it a company worth considering, especially for those with a longer-term investment horizon.

$IJM / 3336 (IJM CORPORATION BERHAD)
Research by Public
Outperform– TP RM4.20

"A Decent Start”

IJM Corp reported a lower headline net profit of RM86.9m (-13.7% YoY, -71.6% QoQ) for 1QFY25, mainly due to lower profit contribution from the property development and toll division, as well as the recognition of fair value loss on WCE Holdings Bhd warrants of RM19.9m in the current quarter, compared to a gain in the= immediate preceding quarter. Excluding non-operating items, the Group’s estimated core net profit stood at RM107.7m (+62.2% YoY, -46.3% QoQ). The results were broadly within both our and consensus estimates, making up 19.1% and 20.3% of full year forecasts, respectively. We remain upbeat on IJM, as we believe that its earnings growth will be supported by positive outlook across all business divisions, especially the construction segment. We maintain our earnings forecast and our Outperform call on IJM with an unchanged TP of RM4.20

Analyst:
Denny Oh
Oh.BoonYeow@publicinvestbank.com.my

$IJM / 3336 (IJM CORPORATION BERHAD)
Research by RHB
Buy – TP RM 4.39

"Staging Strong Growth, More Momentum Ahead; BUY”

Keep BUY, new MYR4.39 TP from MYR4.34, 41% upside, 3% yield. 1QFY25 (Mar) core profit of MYR98m (+47% YoY) missed expectations, making up 19% for our and Street’s full-year projections. The negative deviation came from the weaker-than-expected property segment. We view IJM Corp’s 22x FY25F P/E to still have upside amid the anticipated steady flow of industrial jobs (estimated at 35-40% of orderbook), backed by a 13% YoY jump in Malaysia’s 1QCY25 approved investments. Industrial jobs were absent during the 2017 upcycle, when IJM traded at 16-17x

Analyst:
Adam Bin Mohamed Rahim
adam.mohamed.rahim@rhbgroup.com

$IJM / 3336 (IJM CORPORATION BERHAD)
Research by HLIB
BUY – TP RM3.64

"Positive start”

IJM’s 1QFY25 core PATAMI of RM98.0m matched our and consensusexpectations. Two key positives in the quarter: (i) construction swinging back to profitability and (ii) strong port throughput volumes. FY25 YTD wins amounting to RM1.9bn is on track towards RM5bn target. We are positively biased on its pipeline bolstered by NPE 2.0, Nusantara PFI, DCs/industrial types as well as Indian highways and Penang LRT. Plans to launch RM3.9bn of projects should sustain property contribution while industry division continues to benefit from robust demand. No change to forecast. Maintain BUY with unchanged TP of RM3.64.

Analyst:
Edwin Woo, CFA
ckwoo@hlib.hongleong.com.my

$IJM / 3336 (IJM CORPORATION BERHAD)
Research by Maybank
BUY – TP RM 3.70

"1QFY25: Slight shortfall”

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)

Analyst:
Wong Chew Hann
wchewh@maybank-ib.com

$IJM / 3336 (IJM CORPORATION BERHAD)
Research by TA
Buy – TP RM4.00

"Brief Setback, Solid Ground Ahead”

We reiterate our target price of RM4.00 based on unchanged 1.3x CY25 P/B and 3% ESG premium given our 4-star rating. We continue to like IJM for the following: (i) being the front-runners for large-scale infrastructure projects, i.e. Penang LRT and Nusantara civil servant housing project, (ii) growing its presence in the thriving data centre industry. Maintain Buy on the stock.

Analyst:
Raymond Ng Ing Yeow
raymondng@ta.com.my

$IJM / 3336 (IJM CORPORATION BERHAD)
Research by CGS
ADD – TP RM4.40

"Construction division back in the black”

■ 1QFY3/25 core net profit in line; construction division returns to profits.
■ Encouraging YTD wins; RM5bn new order target for FY25F may be breached, in our view
■ Reiterate Add and SOP-derived TP of RM4.40
.
Analyst:
CHONG Tjen-San, CFA
tjen-san.chong@cgsi.com

$IJM / 3336 (IJM CORPORATION BERHAD)
Research by MIDF
BUY – TP RM3.89

"Off to A Good Start”

• 1QFY25 core net profit grew +48.1%yoy to RM99.1m, on the back of stronger revenue of RM1.40b
• Improvement in construction revenue and PBT but margin was low due to early stages of projects; to pick up in coming quarters
• RM7.0b of outstanding order book; achieved 37.1% of RM5.0b FY25 replenishment target
• Maintain BUY with an unchanged TP of RM3.89

Analyst:
Royce Tan Seng Hooi
royce.tan@midf.com.my

Titan Trading Notes For Wednesday [21/8/2024]:

$KLSE-KLCI retraced back towards the 1642 points region after breaking towards a new yearly high yesterday. With that, our overall market sentiment remains bearish today as we had over 850 counters closing red along the day with it. Daily trading volume settled around the 4.19 billion mark, with sellers dominating the market.

Main stocks that showed strong buying momentum today would be the likes of PBBANK, TOPGLOV, AMBANK, IJM, YINSON, ENGTEX, and MRDIY. All of which were able to sustain their rallies throughout the day despite the weak market sentiment.

$PBBANK / 1295 (PUBLIC BANK BERHAD) since its strong breakout yesterday from its RM 4.30+ main downtrend resistance, had been able to resume its upward trajectory, rallying all the way towards the RM 4.70 regions with huge volume today despite the weak market sentiment.

So far looking quite strong here despite being overbought on the daily chart. As long as able to sustain above its RM 4.50+ main support levels, could continue on towards and beyond the RM 4.80+ regions soon for an uptrend continuation pattern.

It is indeed a rare sight to see heavyweights like PBBANK to rally this much. Definitely worth monitoring as there must be huge capital flowing into this.

$IJM / 3336 (IJM CORPORATION BERHAD) since retracing back towards the RM 2.90+ main support levels on the daily chart earlier this month, had been able to regain its strength, holding well above its RM 3.10+ regions over the past weeks.

Today, it was able to breakout from its RM 3.30 major resistance levels with good volume, rallying towards the RM 3.40 region here despite the weak market sentiment. Although it still faced some selling pressure, its trend is still looking quite strong and healthy now.

As long as able to sustain, IJM could continue to trend back up towards the RM 3.70+ regions in the coming weeks and months as long as able to sustain.

$WENTEL / 0298 (WENTEL ENGINEERING HOLDINGS BERHAD) since breaking out towards the RM 0.39+ regions, had been retracing over the past month here, recently forming a solid dip region around the RM 0.30+ major support levels earlier this month.

Today, it announced superb QR results and the share price was able to remain resilient despite the weak market sentiment. This is a sign that the stock has likely bottomed out already.

If the market is favourable, a breakout from its RM 0.34+ main downtrend resistance levels would be a good start for anything interesting. Will be monitoring it closely.

$IJM / 3336 (IJM CORPORATION BERHAD) Corporation Berhad
Research by MIDF
BUY – TP RM3.89

" More Wins in Industrial Building Space”

• RM561m of new jobs from DC in Gelang Patah and industrial manufacturing facility in Batu Kawan
• RM508m contract for 50:50 JV with Who Hup for 2 blocks of DC
• RM307m contract for E&E manufacturing facility and warehouse
• Outstanding order book of RM7.9b; 37.0% of FY25 replenishment target achieved
• Maintain BUY with an unchanged TP of RM3.89

Analyst:
Royce Tan Seng Hooi
royce.tan@midf.com.my

$IJM / 3336 (IJM CORPORATION BERHAD)
Research by Kenanga
MARKET PERFORM – TP RM 3.00

" Bags RM561m Industrial Building Jobs”

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.

Analyst:
Teh Kian Yeong
tehky@kenanga.com.my

$IJM / 3336 (IJM CORPORATION BERHAD)
Research by Public
Outperform – TP RM4.20

" Secures Two Contracts Worth RM561m”

IJM Corp has secured two new contracts worth a total of RM561m, to build data centres in Johor and an industrial manufacturing facility in Penang. With these jobs win, the Group’s outstanding construction orderbook estimated to increase by 7.7% to RM7.9bn. From our estimates, these jobs would contribute about 2.8% per annum on average, from FY24-26F, based on certain levels of work completion each year. While positive on the contracts win, we keep our forecasts unchanged as this makes up part of FY25 orderbook replenishment assumption of RM5.0bn. We retain our Outperform call on IJM with an unchanged TP of RM4.20.

Analyst:
Denny Oh
Oh.BoonYeow@publicinvestbank.com.my

$IJM / 3336 (IJM CORPORATION BERHAD)
Research by RHB
BUY– TP RM4.34

" On a Roll For Industrial Jobs; Stay BUY”

IJM Corp announced that it secured two contracts worth MYR561m.The first one is for constructing two data centre (DC) buildings for an international DC developer in Gelang Patah, Johor worth MYR254m (effective 50% share in JV with Woh Hup Malaysia). The second: An E&E warehousing and manufacturing facility of a US-based company in Batu Kawan, Penang for MYR307m. The latest wins are a testament the group’s ability in building industrial infrastructure.

Analyst:
Adam Bin Mohamed Rahim
adam.mohamed.rahim@rhbgroup.com

$IJM / 3336 (IJM CORPORATION BERHAD) Corporation
Research by HLIB
BUY– TP RM3.64

" Getting there”

IJM announced double contract wins worth RM561m comprising of a DC project in Johor and an industrial project in Penang. Its DC project JV has positive strategic implications while presence up north could yield more wins in the semi/industrial space riding on NSS. Both wins takes contract flows in FY25 YTD to RM1.9bn, lifting its unbilled construction orderbook to a commendable RM7.9bn. Projects in the pipeline looks healthy bolstered by NPE 2.0, Nusantara PFI, DC/industrial and domestic infra. No change to forecasts. Maintain BUY rating with unchanged TP of RM3.64.

Analyst:
Edwin Woo, CFA
ckwoo@hlib.hongleong.com.my