IJM (IJM MK) (Neutral) - All eyes on value-unlocking plans

Research evidence excerpt

IJM (IJM MK) (Neutral) - All eyes on value-unlocking plans

Global Markets Research

IJM IJMS.KL IJM MK 28 May 2026

EQUITY: ENGINEERING & CONSTRUCTION

RatingAll eyes on value-unlocking plans Remains Neutral

Target price

Reduced fromFY26 results affected by one-offs MYR 2.40 MYR 3.15

Headline numbers appear weak Closing28 May 2026price MYR 2.17

FY26 reported earnings were heavily distorted by forex losses, inventory impairments and India/toll-

related provisions. Revenue for FY26 came in at MYR6.9bn, which was up 10% y-y (driven by the Implied upside +10.6%

Construction and Industry division) while reported net income was only MYR3mn (Fig.2). IJM

announced a 5sen/share second interim dividend and a 1sen/share special dividend which implies Market Cap (USD mn) 1,991.2

full-year DPS of 8sen (flat y-y). ADT (USD mn) 5.9

Outlook for various divisions point to recovery

Relative performance chartConstruction: Management guided to MYR9bn in order wins (two-thirds from Malaysia and

remainder from overseas). On margins, management indicated that Malaysia construction should

normalise around 6% to 9%, with potential to achieve around 6%, while Singapore construction

margins are typically lower at around 4% to 5%. Property: Management’s FY27E guidance is for

property sales of MYR1.8bn to MYR2.0bn, supported by MYR2.0bn of unbilled sales. Management

also indicated that some land sales which did not complete in FY26 could be recognised in

1QFY27E. Industry: Management expects strong demand due to new orderbook. Toll roads:

Focus is on completing WCE, accelerating NPE2 where possible, and preparing mature Malaysian

toll assets for monetisation. Port: Management expects a recovery in FY27E as the major

customer’s maintenance was completed in April.