IJM at 43-month high, a 'neutral' at OSK

Stock Name: IJM
Company Name: IJM CORPORATION BHD
Research House: OSK

IJM Corp, a Malaysian builder and property group, rose to its highest level in almost four years after winning a RM460.6 million building contract from Naza TTDI Construction Sdn Bhd.

The stock climbed 2.7 per cent to RM6.44 at 11:09 a.m. local time, set for its highest close since May 3, 2007.

Meanwhile, OSK Research Sdn Bhd said it was keeping the earnings forecast unchanged for IJM Corp for the financial year 2011 but raised the numbers for financial year 2012-2013 between one per cent and six per cent.

Last Friday, IJM announced it won a RM461 million contract for phase three of the Platinum Park development by Naza TTDI.


The job scope for Platinum Park involves two office tower blocks, podium car parks and basement car parks which is scheduled for completion by December 2013 and will feed into IJM's financial year 2011-2014 earnings.

"Jobs won so far, into financial year 2011, totalling RM1.84 billion, have beaten our RM1.5 billion target," it said in a research note today.

Potential jobs in the pipeline include high-rise buildings in Kuala Lumpur, Kelau Dam, West Coast Expressway and Light Rail Transit packages.

"Given IJM's track record in high-rise buildings in the city centre, we believe it stands a chance of participating in the 100-storey Warisan Merdeka tower, which is expected to cost RM2.5 billion to RM3 billion," it added.

OSK maintained a "neutral" call on IJM given the limited 5.2 per cent upside

Read more: IJM at 43-month high, a 'neutral' at OSK