KUALA LUMPUR: IJM Corporation Bhd’s share price rose in the early trading session after securing a contract worth RM1.10 billion from Malaysia Rapid Transit System Sdn Bhd.
At 10.40 am, IJM climbed one sen to RM1.92 with 2.68 million shares changing hands.
IJM Corp yesterday announced that its construction arm won a contract related to the Rapid
IJM Construction secured the proposed design, construction, and completion of Package 2A Immigration Customs and Quarantine Complex (ICQC) and Package 2B ICQC external works for the RTS Link project.
In a note today, Public Investment Bank Bhd said, accounting for the new win, the Group’s year-to-date orderbook amounted to RM1.9 billion, representing 64 per cent of 2024 orderbook replenishment assumption of RM3 billion.
“Although IJM has successfully achieved 50 per cent of our 2024 orderbook replenishment target, we maintain our target at RM3 billion as we think further job wins in the second half of 2024 would likely translate to 2025 earnings.
Transit System Link Johor Bahru-Singapore (RTS Link project).
“We understand that IJM’s tenderbook of RM16 billion comprising mainly infrastructure projects with MRT3 taking up 60 per cent of the tenderbook value. Hence, we retain our forecast for now. Our ‘Outperform’ call with a target price (TP) of RM2.10,” it said.
Meanwhile, CGS-CIMB Securities Bhd estimates the total contract win for the project at RM1.26 billion and this brings IJM’s current outstanding orderbook to RM6.1 billion.
“IJM is guiding for RM3 billion new order wins for 2023/2024 versus our forecast of RM3.5 billion. “We think it is likely to beat its guidance if key contract wins such as the RM1 billion East Coast Rail Link contract to build a spur line into Kuantan Port, packages under MRT3 and projects in Indonesia, India and Sabah and Sarawak to come to fruition,” it said.
CGS-CIMB reiterates its ‘Add’ rating on IJM with an unchanged TP of RM2.15.- BERNAMA
