IJM bags RM392 mln HSBC tower job at TRX

KUCHING: IJM Corporation Bhd (IJM) through its wholly-owned subsidiary, IJM Construction Sdn Bhd, has bagged a RM392 million contract for the construction of an office building of HSBC Malaysia Bank Bhd (HSBC) at Jalan Tun Razak, Kuala Lumpur.

In a Bursa filing on Monday, IJM said the contract would be for the design, construction and completion of the building with a completion period of 37.5 million.

“Which is anticipated to be handed over to HSBC by December 2020,” the firm said in the filing.

This marks the third key construction job that IJM has secured in its financial year 2018 (FY18) – bumping its total FY18 wins to RM1.2 billion and its outstanding construction order book to RM9.1 billion.

In company report by AmInvestment Bank Bhd (AmInvestment Bank), the bank asserted that they were positive on the latest win for IJM and guided that they are continuing to like the group as it continues to be a good proxy to the booming local construction sector.

“(This) is given (due to) its involvement in key infrastructure projects such as the West Coast Expressway, MRT2 and Kuantan Port Deepwater Terminal.

“Also, IJM is poised to garner a slice of action in the LRT3, Gemas – Johor Bahru double tracking and East Coast Rail Link, based on its forte and track record in rail projects,” said the bank.

Besides that, IJM’s diverse business sectors in property, plantation, building materials, toll roads and ports should provide it with sufficient protection against specific cyclical downturns – resulting in better earnings stability.