Company Coverage
IJM Corporation (IJM MK): 1QFY27: Above Expectations; Construction Shines Through
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
RM2.86
RM3.15
+10.1%
RM2.48
Analyst
Highlights
- IJM’s 1QFY27 earnings beat our expectations on higher-than-expected construction contributions.
- We raise our FY27/28/29 forecasts by 34%/26%/25% respectively as we impute faster recognitions following the predominantly industrial job pipeline.
- Maintain BUY with a higher target price of RM3.15 (from RM2.48 previously).
Analysis
Above our expectations. IJM Corporation (IJM) reported a core net profit of RM116.7m (+216.8% qoq, +31.8% yoy) in 1QFY27. We arrived at this after adjusting for: a) RM4.3m in allowance for impairments, b) RM1.1m in allowance for write-downs, c) RM1.1m in disposal gains, d) RM21.0m in unrealised forex losses, and e) RM3.9m in fair value gains on financial assets. 1QFY27 core net profit beat our expectations but met consensuses, accounting for 33% and 26% of respective full-year forecasts. The positive deviation stemmed largely from stronger-than-expected construction earnings following a sharp uptick in recognitions. A surprise 10 sen special dividend was also announced following the sale of treasury shares earlier in August.
Highlights
- IJM’s 1QFY27 earnings beat our expectations on higher-than-expected construction contributions.
- We raise our FY27/28/29 forecasts by 34%/26%/25% respectively as we impute faster recognitions following the predominantly industrial job pipeline.
- Maintain BUY with a higher target price of RM3.15 (from RM2.48 previously).
Analysis
Above our expectations. IJM Corporation (IJM) reported a core net profit of RM116.7m (+216.8% qoq, +31.8% yoy) in 1QFY27. We arrived at this after adjusting for: a) RM4.3m in allowance for impairments, b) RM1.1m in allowance for write-downs, c) RM1.1m in disposal gains, d) RM21.0m in unrealised forex losses, and e) RM3.9m in fair value gains on financial assets. 1QFY27 core net profit beat our expectations but met consensuses, accounting for 33% and 26% of respective full-year forecasts. The positive deviation stemmed largely from stronger-than-expected construction earnings following a sharp uptick in recognitions. A surprise 10 sen special dividend was also announced following the sale of treasury shares earlier in August.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
RM2.86
RM3.15
+10.1%
RM2.48
Analyst
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