Latest news with #RM1.4bil
The Star
6 days 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 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.
The Star
20-05-2025
- Business
- The Star
SunCon posts stellar quarterly showing
SunCon said the earnings growth was driven mainly by the construction segment's accelerated execution of DC projects. KUALA LUMPUR: Sunway Construction Group Bhd (SunCon) more than doubled its revenue and net profit in its first quarter (1Q25), driven by strong momentum in data centre (DC) and infrastructure projects, and expects sustained growth for the full year. Backed by a RM6.6bil order book and an active tender pipeline, SunCon remains confident, especially in the advanced technology facilities segment. The group has completed one DC project and is managing five ongoing projects for major multinational clients. 'While recent reports have highlighted that several global technology firms are scaling back or deferring certain DC investments across various regions, including Asean, we are pleased to report that progress at our project sites remains robust,' it noted in a recent filling. 'Likewise, our DC tender pipeline remains healthy, with several new bids released in recent weeks.' Furthermore, it said 'recent indications from the US administration to potentially revoke or revise earlier AI chip export restrictions are expected to improve market sentiment and support continued infrastructure investments'. Still, the group said it is not overly reliant on DCs, with ongoing bids in public and private sectors – including the Penang Light Rail Transit (LRT), Penang International Airport expansion, and industrial facilities – along with a steady pipeline of in-house jobs from parent Sunway Bhd . In Singapore, where over 90% of its precast sales are tied to Housing Development Board (HDB) projects, SunCon said demand remains solid. It said the HDB is targeting over 50,000 build-to-order (BTO) flat launches from 2025 to 2027. Beyond HDB developments, SunCon said its precast division has also secured two DC jobs and is expanding into industrial builds. 'Barring unforeseen circumstances, including material price fluctuations, the group is optimistic of registering positive growth for financial year 2025 based on our existing order book,' SunCon said. For 1Q25, SunCon's revenue more than doubled to RM1.4bil from RM604.8mil a year earlier. Net profit also surged, rising over two-fold to RM75.72mil from RM32.4mil in 1Q24, translating to an earnings per share of 5.87 sen versus 2.51 sen previously. SunCon said the earnings growth was driven mainly by the construction segment's accelerated execution of DC projects. It said the precast segment saw revenue and profits moderate, reflecting prior year peak deliveries and ongoing project transitions. SunCon has declared a first interim single-tier dividend of five sen per share, payable on June 25. Meanwhile, in a separate filing, SunCon said its wholly-owned subsidiary Sunway Construction Sdn Bhd (SCSB) had entered into a sales and purchase agreement with Sunway Enterprise (1988) Sdn Bhd – an indirect wholly-owned subsidiary of Sunway Bhd – to dispose of construction machinery and equipment for RM8.68mil. SunCon said the proposed disposal is part of a strategic initiative to refocus on high-value project delivery and core construction competencies. SunCon said the disposal is expected to result in a gain of about RM1.3mil, with net proceeds to be used for the group's general working capital. Separately, SunCon also announced that its subsidiary, SCSB, had accepted a letter of award from K2 Strategic Infrastructure Malaysia Sdn Bhd for the final stage of a DC development project in Johor. The Stage 3 general contractor package, valued at RM260mil, brings the total contract sum for the project to RM392.7mil.
