IJM Corp is poised for significant growth across multiple fronts, according to reports by RHB Investment Bank (RHB) and CGS International Stock Broking House (CGS) today (July 16, Tuesday). The company has strengthened its presence in industrial projects and expanded into Sarawak while eyeing opportunities in Indonesia and new highway developments. With an outstanding order book of approximately RM7.3 billion and recent contract wins boosting FY25 expectations, IJM is positioned for substantial growth momentum.
RHB maintains a BUY rating on IJM, setting a target price of RM4.34, reflecting a potential upside of 23% from current levels.
The bank highlights IJM's robust order book expansion and strategic ventures in Sarawak and Indonesia as key drivers of future earnings growth. Additionally, RHB underscores the company's involvement in the Kuala Lumpur-Singapore High-Speed Rail project consortium, which is expected to attract foreign investment interest.
CGS reaffirms its positive outlook on IJM, reiterating an Add rating with a higher target price of RM4.40. The brokerage firm cites the company's recent wins in the data centre segment and anticipates further opportunities, including bids for the TM-Singtel data centre in Johor. CGS also emphasizes the growth prospects for Kuantan Port, expecting benefits from the East Coast Rail Link (ECRL) completion by late 2026, which could enhance throughput and profitability significantly.
IJM's strategic initiatives in expanding its portfolio and securing substantial contracts position it favourably for future growth, supported by optimistic analyst projections and strategic initiatives in high-growth sectors.