Stock Name: IJM
Company Name: IJM CORPORATION BHD
Research House: OSK
IJM Corporation Bhd, which has tendered for jobs worth more than RM5 billion to date domestically and aboard, has a good chance of securing them given its track record,says OSK Research.
In a research note today, OSK Research said IJM has already identified several road project packages that it intends to bid for in India withindications that tenders would be out by year end.
"India intends to construct 54,000km of roads by 2012 and IJM has a trackrecord of completing 1,400km of roads in the country.
"Given India's local capacity constraint, some of these packages must beawarded to foreigners if the target is to be met," OSK Research noted. In the domestic market, IJM has managed to bag RM597 million worth of jobs.
It also added that the RM5 billion worth of projects that IJM had bid forthe year-to-date, does not include the LRT extension.
Some of the prospective jobs are the Putrajaya Hospital worth RM700 million,pipelines for the inter-state water transfer project (RM200 million - RM300million) in a joint venture with JAKS, the Kelau Dam (RM200 million -RM250million) and some Sarawak-based infrastructure project.
OSK Research also said it believes that IJM could potentially participate inthe West Coast Expressway, which was revived under the 10th Malaysia Plan. IJM is also eyeing the Islamic Teaching Hospital, a project worth RM300million to RM400 million via the private finance initiatives.
On the property side, OSK Research said IJM Land currently has unbilledsales of RM800 million and is looking to launch RM1.2 billion worth ofdevelopment for the 2011 financial year.
However, OSK Research has made a neutral call for IJM Corporation with atarget share price of RM5.32 amid a thin construction margin and limited upside. ECM Libra on the other hand, maintained a "hold" call on the shares with a target price of RM4.77. At 11am, IJM's share price perked five sen to RM4.95. -- Bernama
Company Name: IJM CORPORATION BHD
Research House: OSK
IJM Corporation Bhd, which has tendered for jobs worth more than RM5 billion to date domestically and aboard, has a good chance of securing them given its track record,says OSK Research.
In a research note today, OSK Research said IJM has already identified several road project packages that it intends to bid for in India withindications that tenders would be out by year end.
"India intends to construct 54,000km of roads by 2012 and IJM has a trackrecord of completing 1,400km of roads in the country.
"Given India's local capacity constraint, some of these packages must beawarded to foreigners if the target is to be met," OSK Research noted. In the domestic market, IJM has managed to bag RM597 million worth of jobs.
It also added that the RM5 billion worth of projects that IJM had bid forthe year-to-date, does not include the LRT extension.
Some of the prospective jobs are the Putrajaya Hospital worth RM700 million,pipelines for the inter-state water transfer project (RM200 million - RM300million) in a joint venture with JAKS, the Kelau Dam (RM200 million -RM250million) and some Sarawak-based infrastructure project.
OSK Research also said it believes that IJM could potentially participate inthe West Coast Expressway, which was revived under the 10th Malaysia Plan. IJM is also eyeing the Islamic Teaching Hospital, a project worth RM300million to RM400 million via the private finance initiatives.
On the property side, OSK Research said IJM Land currently has unbilledsales of RM800 million and is looking to launch RM1.2 billion worth ofdevelopment for the 2011 financial year.
However, OSK Research has made a neutral call for IJM Corporation with atarget share price of RM5.32 amid a thin construction margin and limited upside. ECM Libra on the other hand, maintained a "hold" call on the shares with a target price of RM4.77. At 11am, IJM's share price perked five sen to RM4.95. -- Bernama
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