KUALA LUMPUR: IJM Corporation Bhd's recent two contract wins have set the clearer pathway towards its RM5 billion replenishment target, said Hong Leong Investment Bank Bhd (HLIB).
IJM announced its maiden financial year 2025 (FY25) job wins totalling RM962.3 million, lifting construction orderbook to RM7 billion (sizable 4.2 times cover).
The contracts are for construction of warehouses and semiconductor manufacturing facility.
HLIB said it now sees a clearer pathway towards its FY25 RM5 billion target to be filled by New Pantai Expressway (NPE) 2.0, Nusantara PFI and data centres (DC).
"Other projects like Indian highways,
industrial buildings not to mention upcoming infra projects like Penang LRT,
Kuching Urban Transportation System (KUTS) and Johor infra should augment its prospects.
"While IJM has been lagging on DCs, these are well within its capabilities. No change to forecasts," it said.
Overall, HLIB still sees trading opportunities in IJM considering potential for more contract wins and monetisation news flow.
However, it said risks include unfavourable restructuring terms, prolonged elevated materials prices and labour shortage.
HLIB maintained its "Buy" rating on IJM with a higher target price of RM3.50.