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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.
Malaysian Reserve
20-05-2025
- Business
- Malaysian Reserve
Eversendai bags Singapore's New Science Centre, Spain offshore steel fabrication projects
EVERSENDAI Corp Bhd has secured three new projects in United Arab Emirates (UAE), India and Singapore, including structural steel fabrication for an offshore grid in Germany. In an exchange filing today, the company led by executive chairman Tan Sri AK Nathan Elumalay said the new jobs would push its outstanding order book to RM6.6 billion. It said Eversendai Offshore in UAE has secured a project from Dragados Offshore SAU, Spain, for the fabrication of structural steel for the offshore converter blocks (topside) for the LanWin2, BalWin3 and LanWin4 offshore grid connection projects in Germany. The scope of work includes engineering, material procurement, fabrication and assembly of panels and blocks, painting and loadout. The offshore grid connection systems are part of TenneT's 2GW program which sets new standards in offshore grid infrastructure and doubles the existing transmission capacity of offshore grid connection systems. The program aims to help Germany, Netherlands and Europe achieve ambitious climate targets and develop the North Sea as Europe's 'green power plant', the filing added. The blocks will be executed at Eversendai Offshore's facility in Ras Al Khaimah, UAE. Eversendai said it has committed to execute the project and deliver the blocks for the three topsides progressively by December 2027. Eversendai ventured into the European offshore wind renewable energy in the year 2019 by successfully executing offshore wind jackets project for Hollandse Kust Zuid Alpha (2019-2020) and Hollandse Kust Zuid Beta (2020-2021) for 700MW offshore wind converter stations for TenneT, Netherlands. In India, Eversendai has secured the Chennai International Airport's Phase II modernisation project, adding around 1.2 million square feet of space in terminal two expansion. The structural steel works are critical in supporting the extended terminal's roof, facade and large-span structures by incorporating advanced design solutions for both functionality and aesthetic appeal, according to its filing. In Singapore, Eversendai has secured a project for the construction of the New Science Centre in Singapore. The composite building consists of truss, columns, and beams from Level 2 to Roof. The scope for all these projects includes engineering, connection design, shop drawings, steel material supply, fabrication, delivery, erection of structural steel works, it said. — TMR
New Straits Times
14-05-2025
- Business
- New Straits Times
Tex Cycle's Q1 earnings fall, revenue rises
KUALA LUMPUR: Tex Cycle Technology (M) Bhd's net profit dropped three-fold to RM2.1 million in the first quarter (Q1) ended March 31, 2025 from RM6.6 million in the same quarter last year. This was due to the absence of a one-off gain from the disposal of investment properties, Tex Cycle said today. Its revenue, however, jumped 11 per cent to RM8.9 million from RM7.99 million a year ago, boosted by higher contribution from the renewable energy division. In a separate bourse filing, Tex Cycle said its 21st annual general meeting (AGM) and an extraordinary general meeting (EGM) earlier today saw all resolutions approved by shareholders. This included the re-election of directors, appointment of auditors, renewal of share issuance authority and share buy-back mandate. Shareholders also unanimously approved the acquisition of Meridian World Sdn Bhd for RM55 million during the EGM. The company said this will further strengthen its ESG-oriented portfolio by expanding its service offerings to include wastewater treatment, chemical processing and environmental consultancy. Operating from its fully licensed scheduled waste recovery facilities in Kedah, Meridian World serves a wide spectrum of industries, including semiconductor, chemical, and manufacturing sectors. "With the green light for the Meridian acquisition, we are better equipped to accelerate our ESG roadmap and broaden our service base across Malaysia," group chief executive officer Gary Dass Anthony Francis said in a statement. The company remains optimistic about its strategic direction, particularly with the government's heightened enforcement on scheduled waste compliance and the push for renewable energy adoption.
