Latest news with #NewPantaiExpressway
The Star
a day ago
- Business
- The Star
IJM continues to target more job wins for FY26
PETALING JAYA: IJM Corp Bhd is aiming for a higher project replenishment target for its financial year 2026 (FY26) despite missing its target again in its FY25 ended March 31, analysts say. UOB Kay Hian Research (UOBKH Research) said that the construction and property group guided for a higher replenishment range of between RM6bil and 7bil in FY26 after the release of its FY25 results, which beat expectations. A decent chunk of the replenishments will be from the delayed New Pantai Expressway (NPE) extension worth RM1.4bil and government housing project in Nusantara, Indonesia, estimated at RM1bil. Other key replenishment opportunities include the Penang LRT, the Penang Airport and road projects in Sabah and Sarawak. For FY25, IJM reported a core net profit of RM526.9mil, up 55.5% year-on-year following recognition of major construction milestones that saw its construction-segment earnings picking up significantly during 4Q25. Otherwise, UOBHK Research said that property sales had softened due to delayed launches, while infrastructure earnings declined due to lower throughput for tolls and ports. The construction segment's order book came in at RM11.1bil, comprising RM6.6bil from local jobs and RM4.5bil from foreign jobs in Singapore and Britain. Total job replenishments for the division stood at RM2.7bil. Meanwhile, Hong Leong Investment Bank Research (HLIB Research) said the recent approval for the long-awaited RM1.4bil NPE extension project will lift the group's order book. 'With this win, IJM has hit 40% of our FY26 contract-win assumption and we anticipate more wins this year mainly from data centres and the Nusantara project in Indonesia. 'On the balance-sheet front, IJM's low net gearing of 0.28 times provides ample space to fund the projects,' HLIB Research said. According to the research house, the NPE extension project will be fully funded by the company with no financial commitment from the government. The 15km extension will be fully elevated, linking three major highways – IJM's existing NPE and Besraya highways – with the upcoming LIKE Expressway. Construction will begin in the third quarter of this year with completion slated in 2029. Once operational, the NPE extension is poised to add to IJM's recurring income stream, said HLIB Research. As for the group's property division, UOBKH Research said total property sales came in at RM1.5bil in FY25 as delayed launches back in 3Q25 resulted in sales coming in at the lower end of IJM's target. Unbilled sales stood at RM1.54bil and going forward, IJM is targeting RM2bil in sales in FY26 in line with its previous guidance prior to the delays. As for the group's British ventures, contributions from its newly acquired JRL Group Holdings Ltd could begin as early as FY26. 'The current construction churn rate for the JRL Group is around £400mil with net margins of between 2% and 3%. 'While JRL is currently loss-making, this is largely due to balance-sheet issues causing project delays, which should be solved via a capital injection,' UOBKH Research said. The research house has a 'buy' rating on the stock with a higher target price of RM3.15 from RM3 before.
The Sun
26-05-2025
- General
- The Sun
DBKL urged to carefully examine historical elements to be retained in urban redevelopment
KUALA LUMPUR: The Kuala Lumpur City Hall (DBKL) has been urged to carefully examine historical elements to be retained in urban redevelopment involving 139 identified areas, said Communications Minister Datuk Fahmi Fadzil. He said the retention of historical elements is crucial to serve as memories, especially for the original residents of a place, in the pursuit of sustainable and resilient development. 'This area was once a squatter area consisting of wooden houses, due to relocation during the construction of the New Pantai Expressway (NPE). So, there is some history here because some residents, including my staff, were relocated to this area once upon a time. 'So, they have memories of growing up in this area, so that future generations know that before they were born, in previous generations, there was such a community. 'I believe this will help us have strong roots, including in terms of culture, identity, and memories of the place where we were born and raised,' he said. Fahmi, who is also the Member of Parliament for Lembah Pantai, said this when met by reporters after officiating the groundbreaking ceremony for Taman Rimba Bukit Kerinchi at Pantai Sentral Park, developed by IJM Land and Amona Group, here today. Also present were DBKL Planning Executive Director Datuk Zulkurnain Hassan, IJM Land Chief Executive Officer (CEO) Datuk Tony Ling, and Director cum CEO of Amona Group, Datuk Che Hasnadi Che Hassan. Fahmi said that for Lembah Pantai, several areas including Taman Bukit Angkasa have been identified for redevelopment due to housing projects developed 30 to 40 years ago, whereby infrastructure, such as lifts, are now in a dilapidated and worn-out condition. 'To ensure that all residents, especially owners, benefit, we need clear laws. Therefore, DBKL's aspiration to assist in the redevelopment of these 139 areas around Kuala Lumpur needs to move in tandem with a new act, namely the Urban Renewal Act,' he said. Meanwhile, he said thousands of trees, including Meranti Damar, Meranti Daun, and Merawan Siput Jantan species, will be replanted at Taman Rimba Bukit Kerinchi, which is expected to be completed by the end of this year. 'I have asked the developer to consider several aspects, including the history of the area, so that it can be incorporated into the design of the park. 'If we look at the Kuala Lumpur area, there are communities that have long been in certain areas before they were developed, and I hope here we can celebrate that history by incorporating it either in the design or the selection of trees. 'Once upon a time, the Kampung Kerinchi community informed that there were several areas used as places where the community came to find bamboo to be cut and sold, so maybe we can look at what species they are,' he said.
The Sun
26-05-2025
- General
- The Sun
DBKL told to assess heritage aspects in urban redevelopment plans
KUALA LUMPUR: The Kuala Lumpur City Hall (DBKL) has been urged to carefully examine historical elements to be retained in urban redevelopment involving 139 identified areas, said Communications Minister Datuk Fahmi Fadzil. He said the retention of historical elements is crucial to serve as memories, especially for the original residents of a place, in the pursuit of sustainable and resilient development. 'This area was once a squatter area consisting of wooden houses, due to relocation during the construction of the New Pantai Expressway (NPE). So, there is some history here because some residents, including my staff, were relocated to this area once upon a time. 'So, they have memories of growing up in this area, so that future generations know that before they were born, in previous generations, there was such a community. 'I believe this will help us have strong roots, including in terms of culture, identity, and memories of the place where we were born and raised,' he said. Fahmi, who is also the Member of Parliament for Lembah Pantai, said this when met by reporters after officiating the groundbreaking ceremony for Taman Rimba Bukit Kerinchi at Pantai Sentral Park, developed by IJM Land and Amona Group, here today. Also present were DBKL Planning Executive Director Datuk Zulkurnain Hassan, IJM Land Chief Executive Officer (CEO) Datuk Tony Ling, and Director cum CEO of Amona Group, Datuk Che Hasnadi Che Hassan. Fahmi said that for Lembah Pantai, several areas including Taman Bukit Angkasa have been identified for redevelopment due to housing projects developed 30 to 40 years ago, whereby infrastructure, such as lifts, are now in a dilapidated and worn-out condition. 'To ensure that all residents, especially owners, benefit, we need clear laws. Therefore, DBKL's aspiration to assist in the redevelopment of these 139 areas around Kuala Lumpur needs to move in tandem with a new act, namely the Urban Renewal Act,' he said. Meanwhile, he said thousands of trees, including Meranti Damar, Meranti Daun, and Merawan Siput Jantan species, will be replanted at Taman Rimba Bukit Kerinchi, which is expected to be completed by the end of this year. 'I have asked the developer to consider several aspects, including the history of the area, so that it can be incorporated into the design of the park. 'If we look at the Kuala Lumpur area, there are communities that have long been in certain areas before they were developed, and I hope here we can celebrate that history by incorporating it either in the design or the selection of trees. 'Once upon a time, the Kampung Kerinchi community informed that there were several areas used as places where the community came to find bamboo to be cut and sold, so maybe we can look at what species they are,' he said.
The Star
26-05-2025
- General
- The Star
DBKL urged to examine historical elements to be retained in urban redevelopment
KUALA LUMPUR: Communications Minister Datuk Fahmi Fadzil has urged the Kuala Lumpur City Hall (DBKL) to assess the historical elements to be preserved in the urban redevelopment of 139 identified areas. He stated that preserving a location's history is equally important in pursuing sustainable and resilient development. "This area was once a squatter area consisting of wooden houses, due to relocation during the construction of the New Pantai Expressway (NPE). So, there is some history here because some residents, including my staff, were relocated to this area once upon a time. "So, they have memories of growing up in this area, so that future generations know that before they were born, in previous generations, there was such a community. "I believe this will help us have strong roots, including in terms of culture, identity, and memories of the place where we were born and raised," he said. Fahmi, also the Member of Parliament for Lembah Pantai, said this after officiating the groundbreaking ceremony for Taman Rimba Bukit Kerinchi at Pantai Sentral Park, developed by IJM Land and Amona Group, here on Monday (May 26). Also present were DBKL Planning Executive Director Datuk Zulkurnain Hassan, IJM Land Chief Executive Officer (CEO) Datuk Tony Ling, and Director cum CEO of Amona Group, Datuk Che Hasnadi Che Hassan. Fahmi said that several areas, including Taman Bukit Angkasa, have been identified for redevelopment in Lembah Pantai. "To ensure that all residents, especially owners, benefit, we need clear laws. Therefore, DBKL's aspiration to assist in redeveloping these 139 areas around Kuala Lumpur needs to move in tandem with a new act, the Urban Renewal Act," he said. Meanwhile, he said thousands of trees, including Meranti Damar, Meranti Daun and Merawan Siput Jantan species, would be replanted at Taman Rimba Bukit Kerinchi, which was expected to be completed by the end of this year. "I have asked the developer to consider several aspects, including the history of the area, so that it can be incorporated into the design of the park. "If we look at the Kuala Lumpur area, some communities have long been in certain areas before they were developed. I hope we can celebrate that history here by incorporating it in the design or the selection of trees. "Once upon a time, the Kampung Kerinchi community informed that there were several areas used as places where the community came to find bamboo to be cut and sold, so maybe we can look at what species they are," he said. – Bernama
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."
