IJM

[winston]

not vested

Clock ticks for IJM to unlock value

IJM has proposed three initiatives to unlock value, one of which is to list IJM Construction Sdn Bhd, which will primarily comprise its Malaysia and Singapore order book exposure.

We think the monetisation for NPE (New Pantai Expressway) is unlikely, given the group has already secured a RM1.4bil NPE extension which is slated for completion in 2029 and the concession will be extended to 2057.”

Source: The Star

https://www.thestar.com.my/business/bus ... lock-value

[winston]

vested

4Q Results

Revenue: +4%; RM 1.9b
EPS: Losses RM 174m
Net Asset: RM 2.84

https://www.bursamalaysia.com/market_in ... id=3671034

[winston]

vested

Whopping RM172 mil worth of impairment and provision drag IJM into the red

By Izzul Ikram

During 4QFY2026, the group recorded net forex losses amounting to RM94.7 million, RM121.6 million in impairment on unsold inventory, RM51 million in provision for maintenance costs for a highway in India, and weaker performance from its property and port divisions.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/805244

[winston]

vested

IJM Corporation - Before the dawn

IJM’s 4QFY26 core earnings of RM94.8m brought FY26 PATAMI to RM384m (-27% YoY) – below our and street expectations, mainly due to weaker property, port and toll contributions.

4QFY26 core earnings improved QoQ on stronger property sales, higher associate income and resilient industry performance.

We remain positive on its FY27 outlook as
(i) construction kicks into higher gear with execution of DC projects,
(ii) property likely saw its trough in FY26 and
(iii) improvement in port throughput following the completion of maintenance works by a key customer.

We cut FY27/28 earnings by 14% but maintain BUY with a lower SOP-TP of RM3.02.

Source: HLIB

[winston]

vested

Why is the Shareprice of IJM weak?

AI Overview

IJM's share price weakness stems from disappointing full-year earnings, lingering uncertainty following a failed takeover bid by Sunway Bhd and a wider market rotation.

While its construction division remains robust, investor sentiment has been dragged down by operational headwinds and delays in unlocking asset value.

The primary factors weighing on the stock include:

Weakened Earnings: The company reported an annual net profit of just RM3.25 million—its weakest showing since 2008. This was primarily driven by impairment charges, forex losses and softer performance in its property, toll and port divisions.

Failed Takeover Overhang: Sunway Bhd made a RM3.15 per share bid, but the offer lapsed in April after it failed to acquire the required majority acceptance. The unwinding of the takeover premium and the lack of a quick buyout have pressured the stock as investors wait for management to execute its own "value-unlocking" plans.

Management Pressure & Delivery Expectations: Market focus has shifted to whether IJM Corporation Berhad can deliver on strategic promises—such as listing its construction arm, toll road monetisation and exiting India. A slow delivery or failure to execute these promises risks further valuation discounts.

Broader Economic Headwinds: Weak consumer sentiment has slowed property sales, while global geopolitical tensions have impacted cargo throughput at its port division.

Despite the recent price weakness, many research houses maintain a positive outlook, citing an outstanding construction order book and planned shareholder distribution initiatives.

Source: Google AI

[winston]

IJM: Base-building; Poised for reversal
 
Broad-based recovery gaining traction.

Construction segment remains robust, backed by a solid RM7.1bn unbilled order book, an RM18bn tender pipeline, and RM9.0bn targeted FY27 wins as data centre projects accelerate.

Property division likely bottomed in FY26, lifting unbilled sales to RM2.0bn. The industry division sees firm demand supported by a 1m-tonne spun pile order book, while port throughput should recover post-maintenance by a key customer.
 
Compelling value-unlocking and dividend visibility. IJM declared a 5 sen second interim and 1 sen special dividend.

Management targeted a RM3bn capital distribution over three years—equal to an 83 sen cumulative DPS (~28 sen p.a.)—implying a stellar ~12% average yield.

This is backed by toll asset monetization, a potential construction arm listing, and an Indian market exit within two years, alongside a formalized 40% core PATAMI payout policy.
 
Maintain BUY; TP of RM3.02, based on a 20% discount to its RM3.77 SOP value.

After the correction, IJM trades at a palatable FY27/28 P/E of 16.1x/16.3x. The risk-reward profile is favourable with operational nadirs in the rearview mirror. Execution of value-unlocking plans remains the key re-rating catalyst.
 
Source: HLIB

[winston]

vested

IJM’s toll monetisation plan to add long-term value

The company’s long-term value creation strategy is gathering momentum with the New Pantai Expressway Extension (NPE2) making the toll road portfolio more attractive ahead of a planned monetisation exercise.

Proposed listing of its construction arm (IJMC), toll road monetisation and the progressive exit from its India operations.

Unveiled a RM3bil shareholder distribution plan over the next three years, equivalent to about 83 sen per share in cumulative dividends, representing an implied 40% yield.

Toll monetisation is expected to contribute RM575mil, or 19.2%, of the company’s RM3bil shareholder value realisation plan over the next three years.

Management intends to package its wholly owned NPE, Besraya and Lekas highways into either a business trust or bilateral arrangements, while also evaluating the inclusion of the West Coast Expressway or WCE after its completion in the first quarter of calendar year 2027.

NPE2 is on track for completion by October 2029, with overall progress reaching 6%. Once completed, the 15.9-km elevated highway and ramps will improve connectivity between NPE, Besraya and the upcoming Shah Alam Expressway.

Source: The Star

https://www.thestar.com.my/business/bus ... term-value

[winston]

vested

Listing of construction business under way

IJM starts the ball rolling to list its construction business by end-CY27F.

Target valuation of RM5bn quoted by the Edge appears optimistic but the more important message is its commitment to return RM1.2bn from this IPO.

Reiterate Add and TP of RM3.20.

We maintain our Add call and SOP-based TP of RM3.20 we have valued its property business at a 30% discount to RNAV. We like IJM for its established construction franchise and its synergistic spun piles business, while we are also positive on its value unlocking exercises.

Potential re-rating catalysts: faster timeline for value realisation and higher property sales. Downside risks: slow project awards and higher raw material costs.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 0FDAC35645

[winston]

vested

IJM lifts near-term order book target as UK projects turn around, Penang LRT and Nusantara jobs finalise — Kenanga

By Amanda Ho

IJM’s recent acquisition of JRL Group is also bearing fruit, as JRL officially returned to a £2.9 million (RM15.93 billion) pre-tax profit from a previous £49 million loss, it said.

Potential risks include IJM’s sustained weak construction job flow, rising building material costs, project cost overrun and liabilities arising from liquidated ascertained damages.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/811444

[winston]

not vested

End of an era and start of a new phase at IJM

By M Shanmugam

IJM is the only construction company that is managed by professionals and owned by institutions led by the Employees Provident Fund (EPF), Kumpulan Wang Persaraan (Diperbadankan) and Permodalan Nasional Bhd (PNB).

Source: The Edge Malaysia

https://theedgemalaysia.com/node/813459