CIMB reiterates 'Buy' on IJM Corp, citing smart IBS plant's role in sustainability push
KUALA LUMPUR: CIMB Securities has reaffirmed its 'Buy' rating on IJM Corp Bhd, with an unchanged target price of RM3.26, citing the group's smart industrialised building systems (IBS) plant in Bestari Jaya as a significant contributor to its commercial and sustainability goals.
CIMB Securities noted that IJM's sustainability strategy is built on four core pillars, each aligned with the United Nations Sustainable Development Goals (UN SDGs), underscoring the group's dedication to responsible and future-focused development.
"In the financial year 2024 (FY24), IJM's greenhouse gas emissions data underwent independent verification in accordance with SIRIM Bhd's ISO 14064-1:2018 standards. In FY23, IJM introduced R20, the group's own climate strategy that encompasses mitigation and adaptation strategies.
"Some early progress was made in FY24, with IJM's industries unit successfully replacing 13 per cent of cement content contentith non-cementitious materials," it said in a note.
The smart IBS showcases a robotic-assisted precast manufacturing system and commenced production in early 2022.
It is housed under IJM's 100 per cent-owned IJM IBS, part of the group's industries unit that also produces key building material products such as pretension spun high-strength concrete piles, quarry inputs, ready-mixed concrete, and scaffolding systems.
The smart IBS ecosystem can produce a wide array of precast concrete products, including patterned wall panels, columns and beams, among others.
"By offering the mass customisation of pre-cast concrete products that accelerate project timelines in a sustainable manner, IJM IBS's smart IBS solutions have played a pivotal role in supporting IJM's growing portfolio of advanced technology facility mandates, which includes data centres," it added.
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