IJM Corp Bhd has secured two contracts in Sarawak valued at RM246.7 million.
It said on Wednesday, April 14 its unit IJM Construction Sdn Bhd had received two letters of acceptance of tender for the Sarawak Public Works Department.
The contracts were for two access roads to be build in Kapit, Sarawak. The first package involved earthwork, construction of three minor bridges, culverts, drains and pavement works for 20km of road for RM125.2 million.
The second package involved earthworks, rock excavation, construction of two minor bridges, culverts, drains and pavement works for 10.5km of road for RM121.5 million. Construction period for both packages is 24 months.
I still prefer IJM-WB. It is still come with a discount of around 2-3%, and gearing around 3.6. In fact, IJM-WB is one of the most discount warrant listed on KLSE. With more good news pouring in, IJM-WB should be able to maintain its upward momentum.
GOon
Good luck.
Showing posts with label IJM-WB. Show all posts
Showing posts with label IJM-WB. Show all posts
Wednesday, April 14, 2010
Friday, April 9, 2010
IJM: Buy, target price RM5.50
MAYBANK Investment Bank upgraded builder and property firm IJM Corp Bhd (3336) to a "buy" with a target price of RM5.50, saying near-term newsflow on potential awards could intensify in the months leading to the announcement of the 10th Malaysia Plan.
"Positive order flow momentum could trigger a further re-rating of the stock in our view," it said in a report yesterday.
It noted that IJM has also been aggressively bidding for contracts in India. The firm's recent lacklustre order flow in India was due to a deliberate decision by its management to cut back on tenders amid an environment of high operating costs, it said.
"(But) with the recent normalisation of building material prices and borrowing costs, we believe management will resume normal bidding for Indian jobs," it said in a report yesterday.
It noted that the outlook for the non-construction divisions remained positive also.
It forecast the construction division to only account for 12 per cent of IJM's 2011 earnings. It believes the property and building materials divisions would remain as the firm's main earnings contributors, accounting for 31 per cent and 30 per cent earnings respectively.
In Peninsular Malaysia, IJM is looking to tender for packages in major infrastructure projects such as the Pahang Selangor Water Transfer Project, the Low Cost Carrier Terminal project and the Klang Valley Light Rail extension, it said.
Previous posts regarding IJM:
http://cathoon.blogspot.com/2010/03/ijm-wb-up-14.html
http://cathoon.blogspot.com/2010/03/ijm-unit-wins-rm600mil-job.html
http://cathoon.blogspot.com/2009/01/ijm.html
"Positive order flow momentum could trigger a further re-rating of the stock in our view," it said in a report yesterday.
It noted that IJM has also been aggressively bidding for contracts in India. The firm's recent lacklustre order flow in India was due to a deliberate decision by its management to cut back on tenders amid an environment of high operating costs, it said.
"(But) with the recent normalisation of building material prices and borrowing costs, we believe management will resume normal bidding for Indian jobs," it said in a report yesterday.
It noted that the outlook for the non-construction divisions remained positive also.
It forecast the construction division to only account for 12 per cent of IJM's 2011 earnings. It believes the property and building materials divisions would remain as the firm's main earnings contributors, accounting for 31 per cent and 30 per cent earnings respectively.
In Peninsular Malaysia, IJM is looking to tender for packages in major infrastructure projects such as the Pahang Selangor Water Transfer Project, the Low Cost Carrier Terminal project and the Klang Valley Light Rail extension, it said.
Previous posts regarding IJM:
http://cathoon.blogspot.com/2010/03/ijm-wb-up-14.html
http://cathoon.blogspot.com/2010/03/ijm-unit-wins-rm600mil-job.html
http://cathoon.blogspot.com/2009/01/ijm.html
Thursday, April 8, 2010
IJM Corp price estimate lifted to RM5.50
IJM Corp, a Malaysian builder and property group, was raised to “buy” from “hold” at Maybank Investment Bank Bhd to reflect the prospects of building contracts in the country and India in the coming months.
The share price estimate was increased to RM5.50 from RM4.50 in Kuala Lumpur trading, Maybank said in a report today.
Previous posts regarding IJM:
http://cathoon.blogspot.com/2010/03/ijm-wb-up-14.html
http://cathoon.blogspot.com/2010/03/ijm-unit-wins-rm600mil-job.html
http://cathoon.blogspot.com/2009/01/ijm.html
The share price estimate was increased to RM5.50 from RM4.50 in Kuala Lumpur trading, Maybank said in a report today.
Previous posts regarding IJM:
http://cathoon.blogspot.com/2010/03/ijm-wb-up-14.html
http://cathoon.blogspot.com/2010/03/ijm-unit-wins-rm600mil-job.html
http://cathoon.blogspot.com/2009/01/ijm.html
Thursday, March 25, 2010
IJM-WB up 14%
Macquarie Equities Research reiterated its buy call on IJM and raised the target price to RM6.00 from RM5.50 following a review of the company's prospects.
IJM is one of the broker's top picks in Malaysia, saying that the firm will be a key beneficiary of infrastructure spending, both domestically and in international markets such as India and the Middle East.
Potential catalyst to IJM's share price could be the award of the Besraya extension job in fourth quarter this financial year, new construction wins and successful property launches.
"We see IJM as a beneficiary of India's aggressive road spending plans, given its track record. Recent press reports indicate the Indian government's plans for US$50 billion (US$1 = RM3.41) worth of road projects over the next two years.
"Any potential wins in India are positive for the company and would add to IJM's existing orderbook of RM4.4 billion. In total, we have assumed RM1 billion worth of new jobs in financial year 2010 and RM2 billion in financial year 2011," Macquarie said in a January 22 report.
In addition to potentially clinching key domestic projects via its construction division, IJM's building materials division, ICP (Industrial Concrete Product), may also benefit from the increased construction activity, it noted.
IJM-WB (warrant) up 14% since I last talked about it last Saturday. What makes it more interesting is IJM-WB still comes with a discount of 3.6%. It is trading at RM1.17. With a gearing of 4.06, it should moves up another 14% (3.6% X 4.06) or RM0.16 to RM1.33 to eat up all the discount. It still has another 148 days before it expires. Sooner or later, the discount has to be realized.
GOon
Potential catalyst to IJM's share price could be the award of the Besraya extension job in fourth quarter this financial year, new construction wins and successful property launches.
"We see IJM as a beneficiary of India's aggressive road spending plans, given its track record. Recent press reports indicate the Indian government's plans for US$50 billion (US$1 = RM3.41) worth of road projects over the next two years.
"Any potential wins in India are positive for the company and would add to IJM's existing orderbook of RM4.4 billion. In total, we have assumed RM1 billion worth of new jobs in financial year 2010 and RM2 billion in financial year 2011," Macquarie said in a January 22 report.
In addition to potentially clinching key domestic projects via its construction division, IJM's building materials division, ICP (Industrial Concrete Product), may also benefit from the increased construction activity, it noted.
IJM-WB (warrant) up 14% since I last talked about it last Saturday. What makes it more interesting is IJM-WB still comes with a discount of 3.6%. It is trading at RM1.17. With a gearing of 4.06, it should moves up another 14% (3.6% X 4.06) or RM0.16 to RM1.33 to eat up all the discount. It still has another 148 days before it expires. Sooner or later, the discount has to be realized.
GOon
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