IJM Lands RM1.23bn Kulim Chip Job, Order Book Hits RM10.6bn

IJM Corporation has added a RM1.23bn contract to its order book, according to Malacca Securities Research, which is now RM10.6bn. The research house described the total as roughly 1.5 times IJM’s FY26 revenue, a ratio that gives investors a rough sense of how many years of construction work is already contracted.

What IJM Does and Why This Contract Matters

IJM is a Malaysian construction and infrastructure group, and the Kulim job is a high-tech facility rather than a standard civil works project. The research house highlighted the contract as a sign that IJM is winning work in the semiconductor and advanced manufacturing supply chain.

Malacca Securities Research noted that the work sits within Kulim Hi-Tech Park, one of the country’s main hubs for chip-related investment. Projects of this kind typically require specialised engineering, which the research house sees as a reason for the order to be favourably viewed.

Key Financial Numbers in the Report

The headline figures are the RM1.23bn contract value and the RM10.6bn outstanding order book. Against FY26 revenue, the order book equals about 1.5 times, according to the research house, which implies FY26 revenue of roughly RM7bn based on that ratio.

The report does not provide earnings forecasts, net profit figures or margin estimates for IJM. Investors looking for profit projections will need to consult the full note from M+ Online.

Valuation Basis: What the Report Does and Does Not Say

Malacca Securities Research has framed IJM as a positive call on the contract win, but the summary does not name a target price or valuation method. The research house has not published a rating in the portion of the note reviewed here.

Without a disclosed target price, the report’s view rests on order book momentum rather than a discounted earnings or net asset value model. Readers should treat the positive stance as directional, not as a price call.

Risks Flagged by the Research House

Malacca Securities Research pointed to ongoing geopolitical uncertainty and rebounding oil prices as factors that could keep local sentiment cautious. The note expects investors to remain selective towards post-Budget 2027 beneficiaries.

Market context is mixed. The research house noted that the FBM KLCI stayed resilient after Budget 2027, with the Financials sector up 0.9% led by PBBANK and MAYBANK, while Health Care fell 2.4%.

Separately, the research house favours MNHLDG after its RM293.9m data centre power contract win, and sees TNB‘s RM15bn grid investment benefiting transmission and distribution players.

What This Means for Retail Investors

For retail readers, the IJM story is a contract and order book update rather than a profit upgrade. The research house has not quantified how the Kulim project will affect IJM’s earnings or margins.

Investors weighing IJM against the broader market may want to check the full report for forecasts, valuation assumptions and any rating changes. The full report is available from M+ Online at mplusonline.com/research-report/detail/1465.

Key Takeaways

• IJM secured a RM1.23bn microchip plant contract for AT&S in Kulim Hi-Tech Park, according to Malacca Securities Research.
• The outstanding order book rose to RM10.6bn, roughly 1.5 times FY26 revenue.
• The research house is positive on IJM but its summary does not disclose a target price.
• Geopolitical risk and rebounding oil prices are cited as reasons for cautious sentiment on Bursa.
• The full report is available from M+ Online.

Frequently Asked Questions

What is Malacca Securities’ target price for IJM Corporation?

Malacca Securities Research has not disclosed a target price for IJM in the summary of this report. The research house is positive on the company following its RM1.23bn Kulim contract win, and the full note from M+ Online may contain further detail.

How big is IJM’s order book after the Kulim contract?

According to Malacca Securities Research, IJM’s outstanding order book rose to RM10.6bn after the RM1.23bn contract. The research house noted this equals about 1.5 times FY26 revenue.

Does the research house expect IJM’s earnings to rise?

The report does not include earnings forecasts or profit projections for IJM. Malacca Securities Research focused its comments on the contract win and order book, so the full report from M+ Online is the place to check for any earnings estimates.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Ratings and target prices cited are those of Malacca Securities Research and are subject to change. Always do your own research before making investment decisions.

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