PETALING JAYA: After a kitchen-sinking fourth quarter ended March 31, 2026 (4Q26), IJM Corp Bhd
is looking to reset investor sentiment with a RM3bil shareholder distribution plan designed to unlock value and enhance returns over the next three years, analysts say.
The initiative, part of a broader strategy to streamline the company’s portfolio and position its key businesses for independent growth, aims to have realised shareholder value translated into cumulative returns of about 83 sen per share.
Analysts noted that the RM3bil distribution will be delivered through a combination of initiatives, including the proposed listing of its construction arm, the monetisation of domestic toll assets, and the company’s planned exit from India.
The plan will also encompass annual dividend payments, including special dividends, as well as treasury share distributions.
According to MBSB Research, IJM’s planned listing of its construction business – encompassing its Malaysian operations and Hexagon – by 3Q27 would unlock RM1.2bil in value.
Overall, the research house said management remains confident of the construction segment’s prospects for financial year ending March 31, 2027 (FY27), with revenue to exceed RM4bil.
This would be underpinned by a robust outstanding order book of RM14.7bil and a tender book that stands at RM18bil, with RM6bil from data centre-related tenders. The target for contract wins stands at RM9bil for FY27.
IJM also expects its subsidiary Industrial Concrete Products Sdn Bhd to be in a stronger competitive position because of its new automated manufacturing facility in Bestari Jaya, MBSB Research noted.
For 4Q26, the segment came in strong, although profits declined by 30.6% year-on-year (y-o-y) to RM28.7mil mainly due to unrealised foreign exchange (forex) losses of RM19.6mil, analysts pointed out.
Revenue, however, rose by 15.2% y-o-y, reaching RM969.5mil in 4Q26 driven by higher work activities in tandem with a larger order book, it said.
For the cumulative 12 months of FY26, profits improved by 26.5% y-o-y to RM143.2mil, while construction revenue surged by 41.1% y-o-y to RM3.62bil.
Analysts expect the company to monetise its toll assets, with MBSB Research projecting it to realise RM575mil.
The company’s toll segment posted a wider loss of RM48.9mil in 4Q26 versus RM900,000 a year earlier, dragged by higher resurfacing provisions and forex losses on US dollar borrowings in India, analysts said.
For the port segment, TA Research said management expects a gradual recovery in Kuantan Port throughput for FY27 to FY29, following the completion of major maintenance at Alliance Steel (M) Sdn Bhd’s plant in April, with operations resuming thereafter.
Its multi-cargo port profit fell 50.3% y-o-y to RM15.6mil due to lower cargo throughput as a key client underwent maintenance.
It added that earnings visibility for the infrastructure division remains solid, supported by recovering traffic volumes at Besraya, Lekas and West Coast Expressway (WCE), with the completion of the remaining WCE sections by end-2026 expected to further boost revenue growth.
Meanwhile, the planned exit from India is expected to unlock RM165mil in value.
Management has a target of RM1.8bil to RM2bil sales for the property segment in FY27, with RM2bil in unbilled sales backlog offering solid near-term earnings visibility after RM1.7bil in property sales achieved in FY26.
Following the company’s 4Q26 earnings beat, CIMB Research’s profit forecasts for FY27 to FY29 have been revised upward by 5%, 1%, and 2% to RM386mil, RM415mil, and RM535mil respectively.
The research house said stronger expected order book growth and potential gains from a land sale in 1Q27 supports upgrades to the forecast.
Consequently, its target price has been raised to RM2.95 from RM2.90 previously, alongside a kept “buy” call.
IJM declared a five sen interim dividend and a two sen special dividend for 4Q26, bringing its cumulative FY26 dividend payout to eight sen per share, unchanged from FY25.
