Thursday, August 26, 2010

CIMB Research maintains Outperform on IJM Corp

KUALA LUMPUR: CIMB Equities Research said IJM Corp's annualised 1QFY3/11 core net profit made 95% of its forecast and 88% of consensus.

It said on Thursday, Aug 26 the performance was broadly in line as subsequent quarters should be stronger. The CONSTRUCTION [] division remained the weakest link as major contracts had been completed in FY10 and new jobs have yet to kick off in a big way.

The margin for earnings before interest and tax (EBIT) ticked up 6.6 percentage points on-year, driven by PLANTATION []s, industries and property.

CIMB Research said IJM remains optimistic that it can top up its order book by RM2 billion by end-2010.

'We think this is achievable and make no changes to our forecast, Outperform call or RM6.65 RNAV-based target price. The main potential re-rating catalyst is project awards,' it said.

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