IJM

[winston]

On a roll

Maintain BUY call and MYR3.18 SOTP-TP

Less than a week after IJM won a MYR1.26b data centre job win, it won a MYR873.9m M&E job for the same data centre.

FYTD job wins and current outstanding book stand at MYR5.0b and MYR9.3b respectively.

We maintain our earnings estimates, BUY call and MYR3.18 SOTP-TP.

This job win will not have an impact on this FY’s earnings (FY3/26E) as it will only be executed next FY (FY3/27E) but we like it still as it improves earnings visibility from FY3/27E onwards.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/493274.pdf

[winston]

not vested

3336 IJM (BUY)
Decent at the half

IJM’s 1HFY26 core PATAMI of RM212.9m came in within our and consensus expectations.

Construction and industry segments remained robust, while property sales showed an encouraging reacceleration to RM532m.

However, port throughput was sluggish due to a key customer’s major maintenance, though toll volumes remained healthy.

We expect stronger quarters ahead driven by the ramp-up of DC projects.

We continue to expect further contract wins in the DC space. Forecasts remain unchanged. Maintain BUY with TP of RM3.50.

Source: HLIB

[winston]

not vested

More to come

Maintain BUY and MYR3.18 SOTP-TP

After a slow 1QFY26, earnings recovered a tad in 2QFY26 to be in-line with our expectations.

We gather that it will accelerate further in 2HFY26.

Poignantly, property sales recovered and its new job wins streak may continue into the near future.

Our earnings estimates which are premised on FY26E/FY27E/FY28E property sales of MYR2.0b/MYR2.4b/MYR2.4b and new job wins of MYR6.0b/MYR4.0b/MYR4.0b are unchanged.

Our SOTP-TP of MYR3.18 is also unchanged. We like IJM as a construction laggard play.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/501776.pdf

[winston]

Sunway to acquire IJM Corp in RM11 bil cash-and-share deal

By Justin Lim

Each 1,000 shares of IJM Corp entitles its holder to RM315 in cash and 501 Sunway shares worth RM2,835.

The total deal value of RM11 billion values IJM Corp at an enterprise multiple of nearly 12 times and about 27 times the trailing earnings.

The offer will become valid once Sunway secures more than 50% ownership of IJM Corp and customary closing conditions.

Sunway does not intend to maintain the listing status of IJM Corp if the shareholding rises to 75% and will invoke its rights to compulsory acquisition once its control crosses the 90% mark.

The transaction is expected to be completed by the third quarter of 2026.

Source: theedgemalaysia.com

https://theedgemalaysia.com/askedge/klse/3336

[winston]

vested

Sunway's Takeover Bid Of IJM: Reject Or Accept?

The offer price of RM3.15 per share comprises: 10% in cash, amounting to RM0.315 per share. 90% via the issuance of new Sunway shares, valued at RM2.835 per share, based on an issue price of RM5.65 per new Sunway share.

Accept: MBSB Research revised its fair value for IJM Corp from RM3.60 to RM3.29.

Reject: Kenanga Research maintained its SOTP-based target price of RM3.40 for IJM Corp.

Kenanga points out that based on their RM4.73 target price for Sunway, the implied value of the offer for IJM is only RM2.69, which is below IJM's pre-offer share price.

Source: Moo Moo

https://www.moomoo.com/news/post/639439 ... l_content={%22promote_content%22:%22mm:post:63943949%22,%22invite%22:104608730}&data_ticket=1768298737444719&utm_medium=futu_niuniu_share&utm_content=web_share&utm_campaign=news&utm_term=63943949

[winston]

vested

Sunway’s healthcare IPO complicates IJM takeover math

By Justin Lim

Sunway intends to distribute 676.04 million Sunway Healthcare shares to existing shareholders via a dividend-in-specie, based on one Sunway Healthcare share for every 10 Sunway shares held, with the entitlement date to be determined.

Estimated this dividend-in-specie to be worth about 18 sen per Sunway share.

Sunway is valued at a 2026 price-earnings (PE) ratio of 27.6 times, compared to the 19.4 times implied by the RM3.15 offer for IJM.

Based on Kenanga's target price of RM4.73 for Sunway, they calculated that the "implied value" of the offer for IJM was just RM2.69 — below Kenanga's target price of RM3.40.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/789084

[winston]

vested

Malaysia’s sector giants Sunway-IJM RM11 billion merger

The deal will merge two of the country’s leading construction and property firms into one powerhouse valued at nearly RM50 billion

by Tan Ai Leng

Source: Business Times

https://www.businesstimes.com.sg/intern ... ion-merger

[winston]

vested

From its 2025 peak of RM3.29, IJM Corp Bhd’s (KL:IJM) share price has fallen by more than 30%, bringing its valuation down to a PER of about 20 times, which is notably lower than that of its peers, Gamuda Bhd (KL:GAMUDA) and Sunway Construction Group Bhd (KL:SUNCON), at 29 times and 24 times respectively.

IJM has a sizeable construction outstanding order book of RM14.4 billion, including contributions from associate companies.

This comprises RM3.58 billion worth of data centre projects in Johor and Selangor, as well as the RM1.4 billion New Pantai Highway extension (NPE 2).

The group is actively bidding for three hyperscale data centre contracts, with at least one expected to be awarded by early 2026.

Its property development division is also well supported by unbilled sales of RM1.59 billion.

TA Securities views IJM as a strong contender for large-scale infrastructure rollouts in 2026, including the Penang LRT Segment 2 (RM4 billion to RM5 billion) and Segment 3 (RM3 billion to RM4 billion), as well as civil servant housing projects in Nusantara, Indonesia.

Source: The Edge