IJM Corp has retained BUY calls from RHB Research, HLIB and CIMB Securities, with target prices raised to RM3.50, RM3.40 and RM3.25 respectively, after its 1QFY27 results showed stronger construction earnings driven by data centre projects.
RHB Research raised his target price from RM3.05 to RM3.50, implying 22% upside, while HLIB lifted its target from RM3.02 to RM3.40. CIMB Securities raised its target from RM2.95 to RM3.25, with its revised FY27 dividend forecast implying a 6.3% yield.
IJM’s 1QFY27 core profit rose 32% year-on-year to around RM116 million, supported by a 112% jump in construction pre-tax profit to RM73 million as work progressed on data centre and industrial projects. RHB said the construction division’s pre-tax margin expanded to 5.5% from 3.6% a year earlier.
HLIB said earnings were also supported by the Industry division, where pre-tax profit rose 13.7% on stronger demand for spun piles and ready-mixed concrete. CIMB said the division’s order book had reached about 1.2 million to 1.3 million tonnes.
The group has secured RM1.8 billion in new construction jobs so far in FY27, including two semiconductor and medical technology projects worth RM909.5 million. Its tenderbook stands at RM18 billion, with around 40% comprising industrial facilities and data centres.
IJM also declared a special dividend of 10 sen following the disposal of its 142 million treasury shares, part of its broader RM3 billion value-unlocking initiative.
As of 11.08 am, the stock price gained 0.70% to RM2.88.
