PETALING JAYA: IJM Corp Bhd
’s prospects are expected to strengthen following a RM1.2bil semiconductor manufacturing contract in Kedah, which boosts its construction order book and reinforces its capabilities in delivering advanced industrial facilities amid growing demand for semiconductor-related infrastructure.
The latest award brings the group’s financial year-to-date contract wins to RM3bil, putting it on track to meet its full-year replenishment target of RM6bil to RM8bil, according to CIMB Research, which maintained a “buy” call on IJM with an unchanged target price of RM3.25.
“The latest semiconductor job win solidifies IJM’s capabilities in winning advanced manufacturing building mandates on an accelerated timeline,” CIMB Research said.
“This is underpinned by IJM’s in-house Industrialised Building System (IBS) solutions, complemented by the group’s Industrial Concrete Products unit to provide a one-stop building solutions offering,” it noted.
The research house added that the resurgence in contract flows dovetails with IJM’s RM3bil value-unlocking initiatives, including the planned listing of its construction operations in Malaysia and Singapore by the fourth quarter of 2027 (4Q27).
IJM announced on Oct 12 that it had accepted a letter of award to build a manufacturing facility for Austria Technologie & Systemtechnik (AT&S) at the Kulim Hi-Tech Park in Kedah.
Scheduled to commence in 4Q26 and targeted for completion in 4Q27, the project involves constructing a four-storey production building, a three-storey central utility building and a one-storey wastewater treatment facility.
The scope covers design, development, procurement, testing and commissioning, including civil and structural works, mechanical and electrical systems, clean rooms, process utilities and supporting infrastructure.
CIMB Research expects the project to generate pre-tax margins within IJM’s typical range of 5% to 8%, providing a further contribution to its construction earnings pipeline.
The award marks IJM’s second semiconductor-related contract for the financial year ending March 31, 2027, following a RM455mil job to build an automated storage and retrieval system for another semiconductor facility in Kulim.
That project is being delivered using IJM’s IBS precast components, with the production building targeted to achieve Leadership in Energy and Environmental Design Gold certification.
CIMB Research estimated that the latest win lifts IJM’s outstanding order book to approximately RM15.7bil, of which RM8.4bil is from Malaysia.
The expanded order book provides greater visibility over future construction activity as the group works towards its annual contract replenishment target.
The contract also highlighted IJM’s exposure to semiconductor manufacturing investments in Kulim. AT&S, an Austrian manufacturer of high-end printed circuit boards and integrated circuit (IC) substrates, established its first South-East Asian manufacturing campus there.
The facility began high-volume production of IC substrates for US chipmaker Advanced Micro Devices Inc in 2025, primarily for data centre processors.
The latest award adds to IJM’s portfolio of advanced manufacturing projects, while its integrated construction capabilities could support its efforts to secure further specialised industrial building contracts.
