KUALA LUMPUR (June 29): PublicInvest Research has maintained its “Neutral” rating on IJM Corp Bhd at RM21.80 with a higher target price (TP) of RM1.98 (from RM1.74) and said stripping-off exceptional items particularly from forex loss and write off of inventories, IJM Corp reported strong FY20 ending with core net profit surging by more than 100% year-on-year (y-o-y) to RM253.6 million in 4Q.

In a note today, the research house said for full-year FY20, core net profit came in at RM491.1 million (+21.2% y-o-y) on the back of RM6.6 billion (+16.8% y-o-y) revenue, with growth coming from its property and plantation divisions.

It said the results are above house and consensus expectations, making up 169% and 164% respectively.

PublicInvest said the variances were mainly due to stronger recognition from the property segment in 4QFY20 as revenue and core pre-tax profit jumped by 187.3% and 111.3% y-o-y.

“Despite the strong numbers, we are keeping our FY21/22 estimates unchanged as we remain cautious over the outlook for all segments in the near term which will be impacted by movement restrictions as a result of Covid-19.

“We also introducing our FY23 forecasts with earnings expected to grow by 9.0% y-o-y, supported by its property and infrastructure segments.

“We maintain our Neutral call with a higher SOP-based TP of RM1.98 (RM1.74 previously), as we remove the discount previously ascribed given the improved market sentiment,” it said.

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