IJM set for strong FY26 on data centre push
The company has already secured three DC contracts in Johor worth a combined RM845 million, bolstering its track record and positioning it well for future DC-related jobs in the Klang Valley.
With one of the projects slated for delivery in August, CIMB said IJM is well-positioned to take on more DC contracts.
"We have raised our FY26 to FY27 new job win forecasts for IJM by 22–33 per cent to RM6 billion per annum as the company focuses on delivering one or two major data centre (DC) bids worth RM1 to RM2 billion each" the research house said in a note.
As at March 31, 2025, IJM's outstanding order book stood at a healthy RM6.6 billion, or 2.6 times its FY25 construction revenue.
CIMB Securities has raised its FY26–FY27 new order book assumptions for IJM to RM6 billion annually, up 22 to 33 per cent, citing a more visible tender pipeline.
"Yet, our projections are still at the lower end of IJM's RM6 to RM8 billion new contract win target for FY26, suggesting further upside to our earnings forecast.
"Backed by a strong balance sheet with FY25 net gearing at 26 per cent, we maintain our 'Buy' rating on IJM with a higher target price of RM3.70, up from RM3.40," it added.
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