PETALING JAYA: IJM Corp Bhd
’s latest data centre (DC) contract win valued at RM1.26bil awarded by Sime Darby Property Bhd and announced last Friday is seen to build further on the company’s string of DC contracts.
The latest contract makes this the fifth DC project undertaken by the construction-and-property company and the first in the Klang Valley, the rest being in Johor.
Total order book now stands at an estimated RM14.2bil when including overseas projects, with the domestic share of the order book standing at RM8.5bil.
For the financial year ending March 31, 2026, the domestic order book stands at RM4.2bil, with the company guiding for a total RM6bil to RM8bil in new projects both domestic and overseas.
Analysts continued to be positive on the company’s outlook. Most noted that the latest contract was a significant win and believes it would also be a frontrunner for the mechanical, engineering and plumbing works for the same project to be awarded later.
The company has also submitted four to six bids for DC projects this year.
RHB Research, which has maintained a “buy” call with a target price (TP) of RM3.62, said based on its own analysis, DCs now make up 38% of the group’s domestic outstanding order book. It believes the company “is now ready to take on more DC jobs, as it continues to work towards finishing earlier ones.
MBSB Research, which has likewise kept a “buy” call on the counter with a TP of RM3.60, said the execution outlook remains robust with healthy margin prospects.
“With an increasing share of industrial and DC projects in its portfolio, IJM’s earnings mix is shifting toward higher-margin, faster-billing segments,” it said.
