IJM (3336) : BIMB Securities upgrades IJM (3336) to Buy, revises target price to RM7.22
KUALA LUMPUR (Dec 15): BIMB Securities has upgraded IJM Corporation Bhd to “Buy” at RM6.43 with a revised target price of RM7.22 and said IJM Corp finally had accepted a letter of award from West Coast Expressway SB for the appointment of a consortium IJM Corp (70%) and Kumpulan Europlus Bhd (30%) (IJMCKEB JV) as the engineering and procurement contractor for the construction of the West Coast Expressway (WCE) worth at RM5.04 billion.
In a note Monday, the research house said pursuant to the LOA, the JV shall award to IJMC the construction works valued at RM2.8 billion for packages 3, 4, 5, 8 and 9 of the project.
“We are neutral as the Government had forwarded its approval letter to KEuro on 19th May 2014.
“With that, IJM FY15 orderbook replenishment will double to RM4.0 billion, hence surpassed our assumption by 14.3%.
“Thus, we revised our FY15/16 earnings forecast by +0.1%/+1.8% respectively and adjust our target price to RM7.22. Upgrade to Buy,” it said.
http://www.theedgemarkets.com
KUALA LUMPUR (Dec 15): BIMB Securities has upgraded IJM Corporation Bhd to “Buy” at RM6.43 with a revised target price of RM7.22 and said IJM Corp finally had accepted a letter of award from West Coast Expressway SB for the appointment of a consortium IJM Corp (70%) and Kumpulan Europlus Bhd (30%) (IJMCKEB JV) as the engineering and procurement contractor for the construction of the West Coast Expressway (WCE) worth at RM5.04 billion.
In a note Monday, the research house said pursuant to the LOA, the JV shall award to IJMC the construction works valued at RM2.8 billion for packages 3, 4, 5, 8 and 9 of the project.
“We are neutral as the Government had forwarded its approval letter to KEuro on 19th May 2014.
“With that, IJM FY15 orderbook replenishment will double to RM4.0 billion, hence surpassed our assumption by 14.3%.
“Thus, we revised our FY15/16 earnings forecast by +0.1%/+1.8% respectively and adjust our target price to RM7.22. Upgrade to Buy,” it said.
http://www.theedgemarkets.com
