Petaling Jaya, 7 November 2025 – IJM Corporation Berhad (IJM) is well placed to capitalise on Malaysia’s expanding infrastructure and digital-industrial development agenda, thanks to a strong order book, conservative gearing and a clear strategic focus, according to research by MBSB Research.

As of the current fiscal year ending 31 March 2026 (FY26), IJM has secured RM5.03 billion of new job wins, already positioning it at the higher end of its targeted domestic replenishment range of RM3 billion–RM5 billion. Including its foreign contracts, IJM’s total outstanding order book stands at approximately RM15.2 billion, providing visibility and cover across construction and infrastructure divisions.

Key Strengths and Strategic Drivers

IJM’s local order book of RM9.33 billion includes the recent landmark contract for the 15-km extension of the New Pantai Expressway (NPE 2) valued at RM1.4 billion, awarded to its subsidiary.
The company enjoys a strong balance sheet with net gearing at just 0.26 times, giving it capacity and flexibility to bid for major tenders and engage in potential private-finance-initiative (PFI) projects.
IJM is expanding into high-margin digital and industrial infrastructure segments, including logistics parks, data-centre facilities, and semiconductor-foundry developments, aligning with national investment trends.
Overseas expansion is on track: its planned Indonesian operations in Nusantara have already secured design approvals, with feasibility expected by year-end.

Analyst Outlook

MBSB Research maintains a “Buy” recommendation on the stock, with an unchanged target price of RM3.60 per share, based on projected earnings per share of 14.8 sen for FY26 and a price-earnings multiple of 24.3×.

Risks to Monitor

While the fundamentals are strong, analysts caution that successful execution is still required:

Timely contract deliveries and margin maintenance in large-scale projects remain critical.
Infrastructure projects are susceptible to macro and regulatory shifts, foreign labour costs, supply-chain interruptions and PFI-financing risk may affect returns.
Sector-specific competition for data-centre and industrial builds is increasing, which could exert pricing pressure.

Author

Bernard Lee
Bernard is a social activist dedicated to championing community empowerment, equality, and social justice. With a strong voice on issues affecting grassroots communities, he brings insightful perspectives shaped by on-the-ground advocacy and public engagement. As a columnist for The Ledger Asia, Bernard writes thought-provoking pieces that challenge norms, highlight untold stories, and inspire conversations aimed at building a more inclusive and equitable society.