KUALA LUMPUR, Jan 15 — Kenanga Research has maintained its “outperform” stance on IJM Corp Bhd following news of recent acquisitions.
The research house said the acquisitions include a 25 per cent stake in Global Vision Logistics Sdn Bhd, the developer of the Shah Alam International Logistics Hub (SAILH), from Swift Haulage Bhd and Hartamas Mentari Sdn Bhd for RM88.7 million, which is expected to be completed by the first quarter 2024 (1Q 2024).
The company had also acquired a 4.45-hectare brownfield site, known as The Wheat Quarter in the United Kingdom (UK), to develop 811 homes and mixed-use space.
“We are neutral on the investment in the logistics hub given its insignificant contributions in terms of recurring rental and related incomes.
“Meanwhile, acquiring sites in the UK is part of IJM Corp’s expansion strategy to build on its success in the Royal Mint Garden project in Central London,” Kenanga Research said in a note today.
The research house views IJM Corp’s latest move, teaming up with Network Rail, the owner and infrastructure manager of most of the railway network in the UK, as being highly strategic as well.
Kenanga Research has set the target price for IJM Corp’s shares at RM2.31 per share.
As of 10.53 am, IJM Corp’s shares were up by nine sen to RM2.18 with 8.25 million shares traded. — Bernama
