IJM shares slip after unit wins RM1.23 billion Kedah contract
The construction award came from AT&S Malaysia, while RHB Investment Bank put IJM’s remaining order book at RM10.6 billion.
IJM Corporation Bhd traded at RM2.77 at 10.32 am, down three sen, despite a construction contract valued at about RM1.23 billion awarded to its subsidiary in Kedah. Trading volume reached 4.405 million shares.
The wholly-owned unit, IJM Construction Sdn Bhd, accepted the award letter from AT&S Austria Technologie & Systemtechnik (Malaysia) Sdn Bhd. The work covers both design and construction.
Hong Leong Investment Bank Bhd described the award as IJM’s first billion-ringgit semiconductor project as main contractor. It estimated a high single-digit margin on profit before tax and said the accelerated 14-month construction schedule was expected to speed up earnings recognition in financial year 2027-2028.
RHB Investment Bank said Malaysia accounted for around 55 to 60 per cent of IJM’s RM10.6 billion remaining order book. It projected industrial projects, including data centres, would represent around 60 to 70 per cent of the Malaysian portion. New contracts secured so far in FY2027 totalled RM3.0 billion, against IJM’s internal target of RM6 to 8 billion.
