Stock Name: IJM
Company Name: IJM CORPORATION BHD
KUALA LUMPUR: OSK Research has maintained a "trading buy" call on IJM Corp Bhd with the fair value unchanged at RM6.55 following the company's proposal to acquire a 20 per cent stake in West Coast Expressway Sdn Bhd (WCE) for RM6.8 million.
"We deem the announcement within expectations as IJM had earlier hinted at the possibility of taking on a more active role in operating and managing West Coast Expressway," OSK said in a research note today.
WCE had earlier received approval from the Prime Minister's Department to undertake the RM7.1 billion West Coast Expressway project on a build-operate-transfer basis over a 60-year concession period.
IJM said with the proposed acquisition, the group's effective stake in WCE would work out to be a significant 38.1 per cent.
"We believe the announcement will pave the way for commencement of the long-awaited project as we understood earlier that the concession agreement could be inked as early as April this year," the research firm said.
OSK said this latest development would reaffirm its belief that the West Coast Expressway remains largely on track for implementation and should pick up traction in the upcoming months after the concession agreement is signed.
"Physical construction works, which may start as early as fourth quarter this year, should progress smoothly and benefit IJM in the near term as we are of the view that the group would at least bag half of the West Coast Expressway-related job," it added. -- BERNAMA
Company Name: IJM CORPORATION BHD
| Research House: OSK | Price Call: BUY | Target Price: 6.55 |
KUALA LUMPUR: OSK Research has maintained a "trading buy" call on IJM Corp Bhd with the fair value unchanged at RM6.55 following the company's proposal to acquire a 20 per cent stake in West Coast Expressway Sdn Bhd (WCE) for RM6.8 million.
"We deem the announcement within expectations as IJM had earlier hinted at the possibility of taking on a more active role in operating and managing West Coast Expressway," OSK said in a research note today.
WCE had earlier received approval from the Prime Minister's Department to undertake the RM7.1 billion West Coast Expressway project on a build-operate-transfer basis over a 60-year concession period.
IJM said with the proposed acquisition, the group's effective stake in WCE would work out to be a significant 38.1 per cent.
"We believe the announcement will pave the way for commencement of the long-awaited project as we understood earlier that the concession agreement could be inked as early as April this year," the research firm said.
OSK said this latest development would reaffirm its belief that the West Coast Expressway remains largely on track for implementation and should pick up traction in the upcoming months after the concession agreement is signed.
"Physical construction works, which may start as early as fourth quarter this year, should progress smoothly and benefit IJM in the near term as we are of the view that the group would at least bag half of the West Coast Expressway-related job," it added. -- BERNAMA
No comments:
Post a Comment