IJM - More Room to Go (OSK)

Since our upgrade to BUY last week, IJM has gained 14.5%, outperforming the KLCI by 9.8%. There may be more upside to the share price given the likelihood of more jobs being secured. Jobs flow has been decent so far, with ≈ RM1.2bn secured YTD. The toll compensation structure for NPE is also viewed positively. Our TP is raised from RM4.69 to RM5.17. We reckon our TP is reasonable as it implies a current P/BV of 0.9x, still below its historical average of 1.2x.