May 6, 2011

IJM - HwangDBS raises target price for IJM

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

HwangDBS Vickers Research has raised its target price for IJM Corporation Bhd to RM8.70 from RM7.30 previously.

This follows its upgrading of the company's earnings per share forecast for the 2012 and 2013 financial years by nine to fourteen per cent.

On the construction side, it said there were two jobs in IJM's pipeline that could see its RM4 billion orderbook to at least double. They were the New Pantai Expressway extension and West Coast Expressway which were worth a combined RM5 billion.

Other potential jobs were the LRT extensions Phase 2 (RM2.2 billion), MRT tunneling works for the Blue Line (RM11 billion) and government building jobs such as the KL Financial District, RRIM land and Jalan Cochrane.

"We believe IJM is a strong contender for all these projects given its track record, strong balance sheet and niche in building jobs with experiences in Grade A office, luxury condominiums and other commercial and residential projects," the research house said in its Company Focus today.

In property, it highlighted Canal City and Sebana Cove which would be launched in 2012 with a total gross development value of RM7.4 billion.

"The success of Canal City is important because it would give IJM a much needed flagship Klang Valley township development to leverage on for further expansion, possibly including the RRIM land," it said. -- Bernama

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