We organised a tour of IJM Corporation Bhd’s SMART IBS plant in Bestari Jaya and came away feeling more optimistic about the group’s progressive steps to automate its construction processes via advanced industrialised building systems (IBS). The SMART IBS showcases a robotic-assisted precast manufacturing system and commenced production in early 2022. The RM165m IBS facility is housed under IJM’s 100%-owned IJM IBS, part of the group’s industries unit that also produces key building material products such as pretension spun high-strength concrete piles, quarry inputs (e.g., limestone, granite, sand), ready-mixed concrete, and scaffolding systems. This encompasses integrated pre-cast concrete solutions that include design and engineering, precast installation, cost analysis, and optimisation of fully customisable pre-cast manufacturing solutions. To promote the sustainability agenda, IJM IBS has partnered with BubbleDeck International to incorporate BubbleDeck slabs into the group’s IBS projects. As a green product, the BubbleDeck slabs come with several distinctive features such as they utilise 30% less concrete, support building spans of up to 16 metres; reduce site falseworks by 20%, and accommodate simpler mechanical and electrical (M&E) works and a higher headroom with a beamless soffit. We maintain our Buy call on IJM with an unchanged target price of RM3.26, pegging the stock at an unchanged discount of 25% to its sum-of-parts value. We like the stock for its diversified earnings base, healthy balance sheet (net gearing of 28% as of Dec 31, 2024), and improving ESG profile. – CIMB Securities Sdn Bhd (May 14, 2025)
(Calls by analysts tracked by Bloomberg: 15 Buy, 2 Hold, 0 Sell; Consensus target price: RM3.16)
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