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New Straits Times
30-05-2025
- 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.
Malay Mail
02-05-2025
- Business
- Malay Mail
Thailand's 10th richest man jailed 24 years over illegal golf resort expansion into protected land
BANGKOK, May 2 — A Thai court has jailed a billionaire businessman for 24 years after expanding his luxury golf resort into a nature reserve, local media said. Anti-graft prosecutors filed a case in 2021 accusing metal magnate Prayudh Mahagitsiri of colluding with officials to obtain land deeds to extend his Mountain Creek Golf Resort and Residences. The 900-acre (360-hectare) 27-hole resort in Nakhon Ratchasima province, north-east of Bangkok, bills itself as "a sensory multiplex for those with lofty desires". But authorities said 74 acres added to the development fell within areas protected by conservation laws. The Central Criminal Court for Corruption and Misconduct yesterday found 79-year-old Prayudh guilty of multiple charges including bribery and land encroachment, local media outlets said. He was sentenced to 24 years alongside 10 other defendants including his daughter, who was handed a 12-year jail term. Prayudh is filing for an appeal, reports said. He has an estimated net worth of US$2.6 billion (RM11.1 billion), according to Forbes, with business interests in steel and coffee. Forbes ranked him Thailand's 10th richest individual in 2024. Golf is a major Thai tourism draw, particularly among enthusiasts from Europe, Japan and South Korea. However, the sport is often criticised by environmental campaigners because it converts tracts of wilderness into pruned grass greens requiring intensive watering. — AFP
