Stock Name: IJM
Company Name: IJM CORPORATION BHD
IJM Corp Bhd is expected to post stronger second half of financial year 2012 (2HFY12) results, said HwangDBS Vickers
Research Sdn Bhd in a research note.
HwangDBS Vickers said IJM's second quarter financial year 2012
(2QFY12)headline net profit was RM75 million, which was within its and consensus' forecast, excluding the RM32 million foreign exchange loss on a US dollar loan for its infrastructure unit.
It said the key earnings drivers in the quarter under review were
plantations and property which contributed a combined 71 per cent of group pre-tax profit, while manufacturing profit grew by 22 per cent quarter-on-quarter to RM39 million.
"We expect earnings to accelerate in 2HFY12 as works progress," it said. HwangDBS said IJM remained its sector pick and a 'buy' with target price intact at RM8.70.
Meanwhile, Hong Leong Investment Bank Research (HLIB) said IJM has an outstanding construction order book of RM3.8 billion comprising RM3.2 billion (local projects) and RM600 million (two Indian highway projects).
In a note today, HLIB Research said, going forward, the property division would benefit from Canal City project in Shah Alam.
The initial phase of the project, slated to be launched in calendar year of the third quarter of 2012, has a gross development value of RM250 million for middle market housing segment, it said.
HLIB, however, maintained a 'hold' call on the company with a revised target price of RM5.76.
"Although we like IJM for being professionally run, we believe that the company's fundamentals have already been reflected in its share price," it said. -- Bernama
Company Name: IJM CORPORATION BHD
| Research House: OTHER | Price Call: HOLD | Target Price: 5.76 |
IJM Corp Bhd is expected to post stronger second half of financial year 2012 (2HFY12) results, said HwangDBS Vickers
Research Sdn Bhd in a research note.
HwangDBS Vickers said IJM's second quarter financial year 2012
(2QFY12)headline net profit was RM75 million, which was within its and consensus' forecast, excluding the RM32 million foreign exchange loss on a US dollar loan for its infrastructure unit.
It said the key earnings drivers in the quarter under review were
plantations and property which contributed a combined 71 per cent of group pre-tax profit, while manufacturing profit grew by 22 per cent quarter-on-quarter to RM39 million.
"We expect earnings to accelerate in 2HFY12 as works progress," it said. HwangDBS said IJM remained its sector pick and a 'buy' with target price intact at RM8.70.
Meanwhile, Hong Leong Investment Bank Research (HLIB) said IJM has an outstanding construction order book of RM3.8 billion comprising RM3.2 billion (local projects) and RM600 million (two Indian highway projects).
In a note today, HLIB Research said, going forward, the property division would benefit from Canal City project in Shah Alam.
The initial phase of the project, slated to be launched in calendar year of the third quarter of 2012, has a gross development value of RM250 million for middle market housing segment, it said.
HLIB, however, maintained a 'hold' call on the company with a revised target price of RM5.76.
"Although we like IJM for being professionally run, we believe that the company's fundamentals have already been reflected in its share price," it said. -- Bernama
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