KUALA LUMPUR: MIDF Amanah Investment Bank Bhd has maintained “buy” a call on IJM Corp Bhd (IJM) but revised its target price lower to RM1.63 from RM1.95 previously.
This was after IJM secured a contract worth RM864.7mil from IJM Perennial Development Sdn Bhd, a 50:50 joint venture company between the group and Perennial Real Estate Holdings Ltd, to build an 11-storey retail mall and a convention centre in Penang.
“We estimated that the job will likely contribute RM13mil to RM17mil annually to earnings, ” said the investment bank.
It expected the job to be completed within 46 months (by July 31,2021) for the retail mall and within 48 months (by Sept 30,2024) for the convention centre.
The total contract sum of the project awarded fell within its job replenishment assumption as the management expected to restart work on the Light City Project on Aug 20, said MIDF. — Bernama
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