IJM Corporation Bhd is well-positioned to capitalise on rising demand from infrastructure, advanced manufacturing and data centre developments following the commissioning of one of Southeast Asia’s largest automated spun pile manufacturing facilities, according to CIMB Securities Research.
Following a recent site visit to Industrial Concrete Products Sdn Bhd’s (ICP Piles) new Bestari Jaya (ICP BJF) facility, CIMB said the RM300 million investment significantly enhances IJM’s manufacturing capabilities while improving production efficiency through advanced automation.
The 56-acre facility, which began operations in March 2026, is expected to increase ICP Piles’ annual production capacity to more than 2.2 million tonnes from about 1.8 million tonnes previously, reinforcing its position as Malaysia’s leading spun pile manufacturer.
The first production line is already operating at full capacity, while the second line began ramping up operations in July.
Strategic location supports integrated construction
CIMB highlighted the plant’s strategic location, situated within an eight-kilometre radius of IJM’s SMART Industrialised Building System (IBS) facility.
The close proximity allows spun piles manufactured at ICP BJF to be integrated efficiently with SMART IBS superstructures, enabling faster installation and improving project delivery timelines.
The research house believes the integrated manufacturing platform strengthens IJM’s ability to secure large-scale, time-sensitive projects, particularly in the rapidly growing advanced manufacturing and data centre sectors.
Automation to lower production costs
A key feature of the new plant is its extensive adoption of Industry 4.0 technologies aimed at improving productivity and reducing costs.
The facility incorporates fully automated bar-cutting and reinforcement cage-making systems, machine-assisted carousel and concrete spinning processes, a centralised digital platform for predictive analytics, an integrated sludge collection system and a precision bar placement system.
According to CIMB, these technologies could reduce overall spun pile production costs by between 5% and 10%, primarily through a 40% reduction in labour requirements compared with conventional manufacturing methods.
The research house added that environmental initiatives, including rooftop solar panels and a natural curing process, are expected to generate annual energy savings of approximately RM1.1 million.
Industry division remains key earnings contributor
CIMB noted that IJM’s Industry division remained an important contributor to group earnings, accounting for an estimated RM208 million, or 31%, of the group’s core pre-tax profit of RM668 million in FY2026.
The research house values the division at RM1.9 billion, equivalent to RM0.53 per share and representing around 18% of IJM’s sum-of-parts valuation.
With its expanded production platform and higher level of automation, CIMB believes ICP Piles is well placed to capture increasing demand for spun piles both in Malaysia and overseas.
The research house maintained its “Buy” recommendation on IJM with an unchanged sum-of-parts target price of RM2.95, citing growing opportunities in infrastructure development, industrial projects and data centre construction as key long-term growth drivers.
