IJM Corp Bhd (IJM) has shown robust growth potential by targeting high-margin data centre (DC) projects and partnering with a Singapore operator for construction in Johor, according to reports by CGS International Stock Broking House (CGS).
The company is poised to exceed its Fiscal Year 2025 Forecast (FY25F) new order target of RM5 billion, bolstered by a strong pipeline including significant infrastructure and industrial projects. This includes potential contracts for the North Pantai Expressway (NPE) extension, civil servant housing, and larger infra projects in Nusantara Indonesia and India, alongside the recent data centre project for Telekom Malaysia (TM).
CGS maintains an ADD recommendation on IJM with a target price (TP) of RM4.40, highlighting the firm's strategy to focus on high-margin DC projects and its proactive steps in securing future growth. IJM's ability to leverage its strong construction capabilities and strategic partnerships positions it well for continued success and value creation.
The company's emphasis on data centre projects and its tie-up with a Singapore-based operator is expected to enhance its market positioning. Additionally, the upcoming contributions from new projects and improved margins from DC contracts are anticipated to drive strong performance in the coming years.