IJM - Big 4 Contruction Company in Malaysia
IJM - Big 4 Contruction Company in Malaysia
When major construction companies such as Gamuda, SunCon, and YTL have seen their stock prices rise, one undervalued construction gem remains yet to take off. I would like to introduce you to IJM Corporation Bhd, a low price-to-earnings (PE) ratio company among Malaysia's top four construction firms.
Catalyst:
1. IJM PE only 24.xx if compare to GAMUDA PE around 30.xx.
2. Recently received the green light to proceed with the RM1.4 billion New Pantai Expressway extension and government housing project in Nusantara, Indonesia, estimated at RM1bil.
3. On the balance-sheet front, IJM’s low net gearing of 0.28 times provides ample space to fund the projects.
4. As for the group’s British ventures, contributions from its newly acquired JRL Group Holdings Ltd could begin as early as FY26.
5. UOBKH Research issue “Buy” rating with a higher target price of RM3.15. HLIB Research kept its 'Buy' call on IJM, raising its target price slightly to RM2.96.
6. Negeri Sembilan’s ambitious Malaysia Vision Valley (MVV) 2.0 plan, along with its overall infrastructure development agenda, will undoubtedly benefit domestic construction players. One of the major beneficiaries is IJM Corporation, which has established a strong presence in the state. The MVV plan is expected to drive demand for industrial infrastructure, roads, water supply systems, and mixed-use development zones, and IJM is well positioned to capture civil engineering and property development opportunities in the region.
7. According to Maybank Investment Bank, Eco World Development Group and Sime Darby Property are expected to award a total of four major data centre projects—two each—in the next two months, with a combined capacity of around 500MW and a potential total value of up to RM10 billion. IJM is one of the bidders for these projects.
8. As of April this year, construction progress on the East Coast Rail Link (ECRL) has reached 82.5%, approximately two and a half months ahead of schedule. Once the ECRL becomes operational, IJM stands to benefit, particularly through its 60% stake in the Kuantan Port consortium, where it operates and manages the port. The ECRL’s multi-modal connectivity is expected to enhance Kuantan Port's logistics influence across the East Coast.
9. The construction of the West Coast Expressway (E32) is finally nearing completion. The highway operator, WCE Holdings, expects full completion by end-2026, and has proposed to the government to open certain sections early, a proposal that has received initial approval. Early opening would not only help ease traffic congestion in affected areas but would also allow WCE Holdings to begin toll collection earlier, enabling gradual recovery of its investment. IJM holds a 28.14% equity stake in WCE Holdings.
10. IJM participated in the bidding for the RM10 billion Penang Integrated Finance Centre (PIFC) project. The bid was submitted in response to an Expression of Interest (EOI) issued by the Penang Institute. The results of the bidding process are expected in the coming weeks.
11. Major landowner Sime Darby Plantation announced seven potential joint-venture industrial park zones, one of which (Zone 2) is located on Carey Island. The company has signed a Memorandum of Understanding (MoU) with Selangor State Investment Centre (PNSB), which in turn signed two other MoUs with IJM Corporation and Selangor State Development Corporation (PKNS). The goal is to jointly develop an EduTech Park and a food security hub on Carey Island.
12. IJM has been invited to explore the acquisition of a controlling stake in PLINTAS, the urban expressway asset owned by Permodalan Nasional Berhad (PNB). According to sources cited by the New Straits Times, PNB has approached IJM to conduct due diligence on the investment’s prospects.
Technical Analysis
EP 2.60-2.65
SP 2.52
RST 2.70
TP 1 2.73
TP 2 2.80
TP 3 2.93
TP 4 3.24
d) RSI and Stoschastic pointing up
e) MACD cross up and above 0 central line
Disclaimer : The above opinion is never intended to be a BUY SELL CALL. The above article purely for education purpose base on observations, chart and data. Thank you.
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