IJM Corp Bhd's latest construction job win has lifted its outstanding orderbook to above RM9 billion, further enhancing its medium-term earnings visibility.
In its note, Maybank Investment Bank (IB) Research said the latest job win lifts IJM's outstanding orderbook to a new record level, from RM8.6 billion recorded at end March 2017.
Assuming an eight per cent pre-tax margin, Maybank IB estimates a net profit contribution of RM27 million for IJM, or RM0.08 earnings per share, over the construction period into financial year 2021.
"We make no change to our earnings forecast, having imputed job win potentials" it said.
Maybank IB said with this latest contract win, IJM has met 15 per cent of its internal target to achieve RM3 billion of job wins for financial year 2018.
"We believe the remaining could come from KVLRT (Klang Valley Light Railway Transit (KVLRT) 3), Gemas-Johor Baru double tracking, ECRL (East Coast Rail Line) and the Pan Borneo Sabah Highway.
"We should expect to see the first of the main KVLRT 3 packages being awarded over the next few months" it said.
IJM's wholly owned subsidiary, IJM Construction Sdn Bhd, had on July 14 bagged an award from UOB Properties (KL) Bhd to design and construct an office tower, to be known as UOB Tower 2, at Jalan Raja Laut, Kuala Lumpur for RM450.9 million.
The office tower includes five levels of a basement car park, two levels of a podium for a banking hall and 27 levels of office space, including a green lounge reception, a sky lounge and mechanical floors.
Maybank IB has maintained its "buyâ€ call on IJM Corp with an unchanged target price of RM3.90.