Stock Name: IJM
Company Name: IJM CORPORATION BHD
This year will be a recovery year for IJM Corp Bhd's construction division, especially with the general election out of the way, says CIMB Research.
The research house expects a better performance this year by the division, led by a pick-up in progress billings of existing jobs other than My Rapid Transit (MRT) package V5, which has yet to reach 10 per cent physical progress.
"We expect construction's seven per cent pre-tax margin to be sustainable in the coming quarters," it said in a research note today.
Apart from improving fundamentals, potential medium-term catalysts are an award of the West Coast Expressway contract and pre-qualification rounds for MRT new lines.
"We expect sentiments on the stock to improve further as investors switch to high-beta cyclical stocks," it added.
CIMB Research has upgraded its rating on IJM Corp to 'outperform' with a revised target price of RM6.74 from RM5.27 previously.-- Bernama
Company Name: IJM CORPORATION BHD
| Research House: CIMB | Price Call: BUY | Target Price: 6.74 |
This year will be a recovery year for IJM Corp Bhd's construction division, especially with the general election out of the way, says CIMB Research.
The research house expects a better performance this year by the division, led by a pick-up in progress billings of existing jobs other than My Rapid Transit (MRT) package V5, which has yet to reach 10 per cent physical progress.
"We expect construction's seven per cent pre-tax margin to be sustainable in the coming quarters," it said in a research note today.
Apart from improving fundamentals, potential medium-term catalysts are an award of the West Coast Expressway contract and pre-qualification rounds for MRT new lines.
"We expect sentiments on the stock to improve further as investors switch to high-beta cyclical stocks," it added.
CIMB Research has upgraded its rating on IJM Corp to 'outperform' with a revised target price of RM6.74 from RM5.27 previously.-- Bernama
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