KUALA LUMPUR: IJM Corporation Bhd
(IJM Corp) is expected to have a strong chance of securing a subsequent mechanical and electrical (M&E) package after its RM658 million hyperscale data centre contract win in Elmina Business Park, said Kenanga Investment Bank Bhd (Kenanga IB).
IJM Corp had secured the contract for the core and shell works under Package 2 from Sime Darby Property Bhd.
"We view this win positively as it reinforces IJM’s competitive positioning in future hyperscale tenders in a rapidly growing sector. We maintain our forecasts, with an ‘outperform’ rating and target price (TP) of RM3.40,” said Kenanga IB in a note today.
The project serves as an extension to the Package 1 main building works awarded to IJM in October 2025.
This win marked the group’s seventh data centre win to date.
"We view this development positively as securing this tier-1 hyperscale project, which reinforces IJM’s competitiveness in a highly contested tender environment.
"This marks IJM’s first contract win for financial year 2027 (FY2027) and its seventh data centre win to date,” it said, adding that IJM’s outstanding order book increases to RM9.1 billion.
Meanwhile, RHB Investment Bank Bhd (RHB IB) expects the profit before tax (PBT) margin of the job to be five to eight per cent.
After securing the Elmina Business Park job for data centre core and shell works, RHB IB does not rule out IJM also scoring a package for mechanical and electrical (M&E) works for the same data centre, which has yet to be awarded and could be worth RM500 million to RM700 million.
"According to our analysis, data centre jobs now make up around 45-50 per cent of its domestic outstanding orderbook,” it said in a note today.
RHB IB has maintained a "Buy” call on IJM Corp, with an unchanged TP of RM3.15, as the latest job win is within its FY2027 job target assumption of RM5 billion.
As of 12 pm, IJM’s share price rose by six sen to RM2.29, with 3.44 million shares traded. - Bernama
