Latest news with #IJMCorpBhd
New Straits Times
5 days ago
- Business
- New Straits Times
IJM Corp's construction book may expand to RM11bil with new deals
KUALA LUMPUR: IJM Corp Bhd is expected to see growth in its construction order book and a pickup in property earnings going into financial year 2026 (FY26). Hong Leong Investment Bank Bhd (HLIB Research) said the group's outstanding order book stands at RM6.6 billion, representing 2.6 times cover on FY25 construction revenue. The firm said IJM's effective order book could expand to RM11.1 billion, including contributions from construction associates JRL Group, which is pending completion, and Hexacon. "Contracts secured in FY25 amounted to RM2.7 billion, falling below management's guidance of RM5 billion, largely due to delays in the NPE extension. Nevertheless, IJM has started FY26 strongly, securing approval for the NPE extension worth RM1.4 billion. "Management is targeting a replenishment rate of RM6 billion to RM8 billion, backed by five to six data centre tenders, Penang LRT Segment 2, and airport jobs, in addition to NPE 2.0 and Nusantara PFI," it said in a note. HLIB Research also anticipates the potential conversion of two Nusantara private finance initiatives in FY26, namely the public housing project worth RM1.5 billion and the 26km multi-utility tunnel project. "In our view, IJM, possibly through a joint venture, could generate returns from availability charges. However, the conversion of the latter could spill over into FY27, in our view," it added. The research house remains upbeat on the group's longer-term prospects in the ports segment. This is supported by investments in MCKIP, the ECRL and the Phase 1 carbon capture, utilisation and storage project under the National Energy Transition Roadmap, which could add five million tonnes per annum of throughput. HLIB Research said toll volumes remained healthy in the fourth quarter and expressed confidence that the NPE restructuring will not result in toll rate cuts in the near term. It noted that IJM has also maintained that plans to monetise mature highways remain in place, though the timing remains uncertain. The firm has kept its 'Buy' call on IJM, raising its target price slightly to RM2.96 from RM2.92. "We continue to see trading opportunities in the stock given its valuation discount to peers, potential contract wins and monetisation news flow. "Key catalysts include contract awards, while risks involve unfavourable restructuring terms, high material costs and labour shortages," it said.
The Star
5 days ago
- Business
- The Star
IJM Corp upbeat about construction activity
IJM Corp group chief executive officer and managing director Datuk Lee Chun Fai. PETALING JAYA: IJM Corp Bhd is confident of delivering satisfactory operational performance for the financial year ending March 31, 2026 (FY26). In a statement, group chief executive officer and managing director Datuk Lee Chun Fai said the group's RM7.6bil outstanding order book would be complemented by a further RM3.5bil from its 50% acquisition of JRL Group post the financial year-end, strengthening its construction capabilities and expanding our presence in the United Kingdom. 'Looking ahead, IJM Corp is well-positioned to benefit from national growth priorities such as infrastructure investment, the development of special economic zones in Johor and the rising demand for digital infrastructure.' For the fourth quarter ended March 31, 2025 (4Q25), IJM Corp's net profit dipped to RM128.95mil from RM305.52mil in the previous corresponding period, while revenue rose to RM1.79bil from RM1.76bil a year earlier. For FY25, IJM Corp's net profit dropped to RM403.38mil from RM600.28mil in the previous corresponding period, while revenue grew to RM6.25bil from RM5.92bil previously. IJM Corp said the construction division remained the key revenue contributor, supported by a high level of construction activity, while the industry division continued to benefit from a strong order book and the ongoing rollout of data centres and infrastructure projects. The group's improving outlook is further supported by resilient property sales in FY25, sustained unbilled sales, and steadfast efforts to grow its business, backed by strategic locations of its developments and the strength of its established brand. The property division recorded RM1.5bil in sales for FY25, supported by unbilled sales of RM1.5bil. According to Lee, the group is also positioning its overseas property portfolio as a key engine for growth. 'The redevelopment of 25 Finsbury Circus presents a rare opportunity to transform a historic landmark into a modern, high-performance workspace. 'The building is undergoing a sustainability-led refurbishment that will increase its total footprint by 26%. 'Securing a 20-year lease with an international law firm enhances our recurring income profile and affirms the long-term potential of our UK property strategy,' Lee said. Additionally, IJM Corp said that Kuantan Port recorded lower cargo throughput in FY25, achieving 24.3 million tonnes. 'However, the long-term growth prospects for the port remain strong, underpinned by new foreign direct investments at the Malaysia-China Kuantan Industrial Park (MCKIP). 'The government's continued infrastructure investment in the region, particularly via the East Coast Rail Link, reinforces Kuantan Port's role as a strategic logistics and trade hub for the East Coast,' he said. As the port operator and infrastructure enabler, IJM Corp said it is well-positioned to benefit from the growing industrial activity and cargo throughput driven by MCKIP. Commenting on the group's FY25 performance, Lee said: 'Despite external headwinds, our results underscore the group's operational resilience and progress on key strategic fronts.' 'We remain focused on execution, strengthening fundamentals, and driving long-term growth across all business divisions,' he added.
The Star
5 days ago
- Business
- The Star
IJM Corp confident of delivering satisfactory operational performance
IJM Corp group chief executive officer and managing director Datuk Lee Chun Fai. PETALING JAYA: IJM Corp Bhd is confident it can deliver satisfactory operational performance for the financial year ending March 31, 2026 (FY26). In a statement, group chief executive officer and managing director Datuk Lee Chun Fai said the group's RM7.6bil outstanding order book will be complemented by a further RM3.5bil from its 50% acquisition of JRL Group post the financial year-end, strengthening its construction capabilities and expanding our presence in the UK. 'Looking ahead, IJM is well-positioned to benefit from national growth priorities such as infrastructure investment, the development of special economic zones in Johor and the rising demand for digital infrastructure.' For the fourth quarter ended March 31, 2025 (4Q25), IJM Corp's net profit dipped to RM128.95mil from RM305.52mil in the previous corresponding period, while revenue rose to RM1.79bil from RM1.76bil a year earlier. For FY25, IJM Corp's net profit dropped to RM403.38mil from RM600.28mil in the previous corresponding period, while revenue grew to RM6.25bil from RM5.92bil previously. IJM Corp said the construction division remained the key revenue contributor, supported by a higher level of construction activity, while the industry division continued to benefit from a strong order book and the ongoing rollout of data centres and infrastructure projects. 'The group's improving outlook is further supported by resilient property sales in FY25, sustained unbilled sales, and steadfast efforts to grow its business, backed by strategic locations of its developments and the strength of its established brand. The property division recorded RM1.5bil in sales for FY25, supported by unbilled sales of approximately RM1.5bil. Lee said the group is also positioning its overseas property portfolio as a key engine for growth. 'The redevelopment of 25 Finsbury Circus presents a rare opportunity to transform a historic landmark into a modern, high-performance workspace. 'The building is undergoing a sustainability-led refurbishment that will increase its total footprint by 26%. Securing a 20-year lease with an international law firm enhances our recurring income profile and affirms the long-term potential of our UK property strategy.' Additionally, IJM Corp said that Kuantan Port recorded lower cargo throughput in FY25, achieving 24.3 million tonnes. 'However, long-term growth prospects for the port remain strong, underpinned by new foreign direct investments at the Malaysia-China Kuantan Industrial Park (MCKIP). 'The Government's continued infrastructure investment in the region, particularly via the East Coast Rail Link, reinforces Kuantan Port's role as a strategic logistics and trade hub for the East Coast. As the port operator and infrastructure enabler, IJM Corp said it is well-positioned to benefit from the growing industrial activity and cargo throughput driven by MCKIP. Commenting on the group's FY25 performance, Lee said: "Despite external headwinds, our results underscore the group's operational resilience and progress on key strategic fronts.' 'We remain focused on execution, strengthening fundamentals, and driving long-term growth across all business divisions.'
New Straits Times
26-05-2025
- Business
- New Straits Times
NPE extension set to unlock RM5.6bil in economic benefits: analysts
KUALA LUMPUR: The long-anticipated New Pantai Expressway (NPE) extension is expected to generate RM5.6 billion in economic spillover benefits and catalyse development in the Bangsar fringe area. The NPE extension has received official approval from the Ministry of Works, signalling a major step forward in Kuala Lumpur's infrastructure upgrade under the Traffic Master Plan 2030. IJM Corp Bhd confirmed that the RM1.4 billion project—initially cancelled in 2012—has been revived through renewed government engagement. As a fully private initiative, IJM will fund the construction in full. Spanning 15 kilometres, the fully elevated highway will connect the Pantai Dalam Toll Plaza to the Jalan Istana interchange via Jalan Syed Putra. The extension will enhance traffic flow by integrating the NPE with the Besraya and the upcoming Laluan Istana Kiara Expressway (by Ekovest). The improved link is expected to divert up to 40 per cent of traffic from Jalan Bangsar into central Kuala Lumpur. IJM currently holds a 34-year concession (with about 12 years left before the extension) for the 19.6-km NPE, a key corridor connecting Subang Jaya to the capital, with major toll points including Pantai Dalam, PJS2, and PJS5, as well as the Kuchai Link and Pantai Sentral Park interchange. The NPE was constructed between 2000 and 2004, with the expressway officially opening to traffic on April 30, 2004. The project was led by Road Builder (M) Holdings Bhd, which was acquired by IJM in 2007. Datuk Lee Chun Fai, IJM's group chief executive officer and managing director, said the approval marks a key milestone in the group's ongoing efforts to improve urban mobility throughout the Klang Valley. Other than NPE, IJM also wholly owns Besraya (M) Sdn Bhd, whose concession to operate the 28.9km Sungai Besi Highway ends in 2046 (previously 2040 before toll restructuring in 2022); a 50 per cent stake in Lebuhraya Kajang-Seremban Sdn Bhd, which has a concession to run the 44.3km Kajang Seremban Highway (Lekas) through 2064 (previously 2039); and an effective 41 per cent shareholding in the 233km West Coast Expressway Sdn Bhd, which is 80 per cent controlled by publicly traded WCE Holdings Bhd. IJM has a 26.65 per cent stake in WCE, and its wholly owned Road Builder has a 20 per cent direct stake in the West Coast Expressway. It also has four highways in India: the 79km Chilakaluripet-Vijayawada Tollway; the 19.8km Dewas Bypass Tollway (under construction); the 109km Solapur-Bijapur Tollway (under construction); and the 56km Western Access Tollway in Buenos Aires, Argentina. Brokerages have responded positively to the news. CIMB Securities said the project will immediately contribute RM1.4 billion in internal contracts to IJM's construction division while reinforcing its strategy to grow toll infrastructure assets and recurring income streams. For the nine months ended December 31, 2024, IJM's toll segment reported a 58 per cent year-on-year decline in core pre-tax profit to RM27.1 million, impacted by RM53 million in associate losses. NPE and Besraya collectively posted RM96 million in pre-tax profit, a 7.2 per cent YoY decline. CIMB maintained its 'Buy' rating on IJM, with an unchanged sum-of-the-parts-based target price of RM3.26. It said the project's RM1.4 billion contribution is within its FY26F new contract win estimate of RM4 billion. However, it has not yet factored in earnings contributions from the expanded concession pending further updates. Public Investment Bank Bhd also reaffirmed its 'Buy' call and TP of RM3.26, echoing that the brownfield project fits well with IJM's long-term toll infrastructure strategy and would deliver meaningful recurring revenue. "We make no changes to our earnings forecast, as the expected order book accretion of RM1.4 billion from the NPE extension is within our new contract win estimates of RM4 billion for FY26F. "Similarly, we have not factored in any contributions from the expanded NPE concession pending further updates on its operational parameters."
The Star
23-05-2025
- Business
- The Star
IJM Corp gets approval for RM1.4bil New Pantai Highway extension and toll restructuring
PETALING JAYA: IJM Corp Bhd has received approval from the Ministry of Works for the New Pantai Highway Extension and the toll restructuring for the existing New Pantai Highway. In a release, IJM noted the extension will have a new toll plaza and be funded by the concessionaire, New Pantai Expressway Sdn Bhd (NPESB). Construction works are expected to commence in the third quarter of 2025 and cost the group RM1.4bil to complete. The 15km highway extension is targeted to be operational by 2029. Meanwhile, the toll restructuring of the existing New Pantai Highway entails maintaining current toll rates until the expiry of the concession period. Apart from easing congestion, IJM stated the extension project is expected to generate economic spillover benefits of RM5.6bil, unlocking growth for nearby developments such as Pantai Sentral Park and Bangsar South. The existing New Pantai Highway or Expressway is a 19.6km dual carriageway developed by NPESB, a subsidiary of IJM Corp.
