Latest news with #RM165m
Malaysian Reserve
14-05-2025
- Business
- Malaysian Reserve
IJM retains Buy, with an unchanged target price of RM3.26
We organised a tour of IJM Corporation Bhd's SMART IBS plant in Bestari Jaya and came away feeling more optimistic about the group's progressive steps to automate its construction processes via advanced industrialised building systems (IBS). The SMART IBS showcases a robotic-assisted precast manufacturing system and commenced production in early 2022. The RM165m IBS facility is housed under IJM's 100%-owned IJM IBS, part of the group's industries unit that also produces key building material products such as pretension spun high-strength concrete piles, quarry inputs (e.g., limestone, granite, sand), ready-mixed concrete, and scaffolding systems. This encompasses integrated pre-cast concrete solutions that include design and engineering, precast installation, cost analysis, and optimisation of fully customisable pre-cast manufacturing solutions. To promote the sustainability agenda, IJM IBS has partnered with BubbleDeck International to incorporate BubbleDeck slabs into the group's IBS projects. As a green product, the BubbleDeck slabs come with several distinctive features such as they utilise 30% less concrete, support building spans of up to 16 metres; reduce site falseworks by 20%, and accommodate simpler mechanical and electrical (M&E) works and a higher headroom with a beamless soffit. We maintain our Buy call on IJM with an unchanged target price of RM3.26, pegging the stock at an unchanged discount of 25% to its sum-of-parts value. We like the stock for its diversified earnings base, healthy balance sheet (net gearing of 28% as of Dec 31, 2024), and improving ESG profile. – CIMB Securities Sdn Bhd (May 14, 2025) (Calls by analysts tracked by Bloomberg: 15 Buy, 2 Hold, 0 Sell; Consensus target price: RM3.16)
Yahoo
30-04-2025
- Business
- Yahoo
Returns Are Gaining Momentum At Jaya Tiasa Holdings Berhad (KLSE:JTIASA)
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Speaking of which, we noticed some great changes in Jaya Tiasa Holdings Berhad's (KLSE:JTIASA) returns on capital, so let's have a look. Our free stock report includes 1 warning sign investors should be aware of before investing in Jaya Tiasa Holdings Berhad. Read for free now. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for Jaya Tiasa Holdings Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.13 = RM250m ÷ (RM2.0b - RM165m) (Based on the trailing twelve months to December 2024). Therefore, Jaya Tiasa Holdings Berhad has an ROCE of 13%. In absolute terms, that's a satisfactory return, but compared to the Forestry industry average of 2.4% it's much better. View our latest analysis for Jaya Tiasa Holdings Berhad Above you can see how the current ROCE for Jaya Tiasa Holdings Berhad compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Jaya Tiasa Holdings Berhad . We're delighted to see that Jaya Tiasa Holdings Berhad is reaping rewards from its investments and has now broken into profitability. The company now earns 13% on its capital, because five years ago it was incurring losses. While returns have increased, the amount of capital employed by Jaya Tiasa Holdings Berhad has remained flat over the period. So while we're happy that the business is more efficient, just keep in mind that could mean that going forward the business is lacking areas to invest internally for growth. So if you're looking for high growth, you'll want to see a business's capital employed also increasing. One more thing to note, Jaya Tiasa Holdings Berhad has decreased current liabilities to 8.2% of total assets over this period, which effectively reduces the amount of funding from suppliers or short-term creditors. Therefore we can rest assured that the growth in ROCE is a result of the business' fundamental improvements, rather than a cooking class featuring this company's books. To sum it up, Jaya Tiasa Holdings Berhad is collecting higher returns from the same amount of capital, and that's impressive. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. If you want to continue researching Jaya Tiasa Holdings Berhad, you might be interested to know about the 1 warning sign that our analysis has discovered. While Jaya Tiasa Holdings Berhad may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
