IJM Corp's orderbook may reach RM9b by year-end

KUALA LUMPUR: Construction company IJM Corporation Bhd's orderbook may potentially hit RM9 billion by year-end from its existing RM4 billion, research houses said.

The increase will come from the RM5 billion worth of new orders for the New Pantai Expressway (NPE) extension and the West Coast Expressway (WCE), said HwangDBS Vickers Research in its research note on Monday, May 30.

It also said the RM9 billion orderbook will also surpass IJM Corporations record RM6.5 billion in 2007.

"The quality of order wins will be better with 90 per cent being local government jobs against the 50 per cent from overseas in 2007.

"We understand margins will be attractive and stable given both are privately negotiated contracts between its concession holders and the government," HwangDBS Vickers added.

The concession agreement for the RM800 million-RM900 million NPE should be inked in October this year, OSK Research said in its note.

OSK also said IJM is eyeing some private finance initiative (PFI) jobs in Kuala Lumpur.

OSK Research has maintained its "buy" call on IJM Corporation and raised its fair value of the company from RM6.76 to RM6.96.

HwangDBS meanwhile, has also maintained a "buy" call at RM6.20 with a target price RM8.70. - Bernama

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