Positive views of IJM’s growing industrial forays

PETALING JAYA: Analysts are striking an upbeat tone on IJM Corp Bhd after reviewing the group’s three ongoing warehouse-related development projects.

“The presence of Maersk’s 2.1 million sq ft storage and office site in Section 26, Shah Alam, is a testament to the importance of the area for fulfilling logistics needs,” RHB Research said.

The research house added that the project also underscored its confidence in IJM’s growing exposure to industrial construction and logistics infrastructure.

The optimism is anchored in visible execution progress and the rising contribution of industrial jobs to IJM’s order book.

RHB Research said it estimates that industrial projects, excluding data centres, account for about 10% to 15% of IJM’s domestic order book of RM8.4bil, giving the group a meaningful foothold in a segment benefitting from structural demand for logistics and warehousing space.

IJM’s largest ongoing job in Shah Alam is the first phase of the RM654mil Shah Alam International Logistics Hub (SAILH), awarded in June 2023 by Global Vision Logistics.

The project comprises a four-storey warehouse complex, a multi-level parking facility and an office block. Based on site visits, RHB Research said it believes SAILH is already 90% to 95% complete.

The second project, worth RM584mil and awarded in June 2024 by Strategic Sonata Sdn Bhd, involves the construction of a logistics hub in Section 15, Shah Alam.

RHB Research estimates the project is around 70% to 80% complete, with six storeys already up and completion expected by the first half of this year.

The third is the RM284mil Exio Logistics Hub in Elmina in Shah Alam, which broke ground on a 22-acre site last February.

The research house estimates that the project was more than 90% completed as of the end of last December.

RHB Research has a “buy” call on IJM with unchanged earnings forecasts and a sum-of-parts target price of RM3.43.