Why IJM Could Outperform — Even Without a Construction Boom

Investors often chase the next “turnaround” story. But what if the real outperformer is one that is already delivering steady, disciplined gains? IJM Corporation Berhad may not grab headlines, yet its post-2022 transformation tells a different story - faster profit growth, stronger cash flow, and sharper capital discipline.

After shedding its plantation arm, IJM refocused on four synergistic engines — Construction, Property, Industry, and Infrastructure — each feeding into the other through vertical integration. This structure is not just efficient; it is strategic.

It gives IJM cost advantages that peers struggle to match, recurring cash from concessions, and a pipeline tilting toward higher-value projects like industrial parks, logistics hubs, and data centres. Peer analysis shows IJM ranking among Malaysia’s best in returns on capital, margins, and cash flow stability — even as its earnings per share lag. That weakness, however, looks fixable.

With better capital allocation and leverage discipline, IJM could move from “good” to top-quartile performance among construction and property conglomerates.

The catch? The stock already trades near intrinsic value. Yet the fundamentals suggest growing strength. For long-term investors, the question isn’t whether IJM can survive a mature market, but whether it can thrive in it.

For more insights go to https://www.i4value.asia/2025/10/why-ijm-can-outperform-peers-without.html