KUALA LUMPUR, June 27 — IJM Corp Bhd’s (IJM) share price rose by 3.33 per cent in the early trade after the company’s wholly-owned subsidiary, IJM Construction Sdn Bhd was awarded a RM653.6 million contract to develop phase one of the Shah Alam International Logistics Hub (SAILH).
At 10.51am, IJM’s shares rose by five sen to RM1.55 sen per unit from RM1.50, with 3.16 million shares traded.
Commissioned by Global Vision Logistics (GVL), SAILH will be the country’s first green-certified logistics hub, one of the largest in the Asean region.
RHB Research said IJM now has two industrial-related jobs in its order book, in addition to the RM341 million contract awarded in November 2022 for Advanced Semiconductor Engineering Inc’s new chip and testing facility in Penang.
“On profitability, we expect IJM to book a profit before tax margin of six to nine per cent for this latest contract, in line with the same metric of its previous industrial job.
“We make no change to our forecasts for IJM, as this latest contract win is within our financial year 2024 job replenishment target of RM3 billion. As such, we maintain our target price (TP) for IJM’s shares at RM1.59 per unit,” it said in a note today.
Meanwhile, Hong Leong Investment Bank believes phase two of the project will be larger but the awards could be much later.
“We believe construction opportunities for phase two could be even larger but is an unlikely near-term pipeline (tenders to be called much later).
“We make no change to our forecasts and maintained a ‘buy’ rating on IJM’s shares, with unchanged TP of RM1.88,” it said. — Bernama
