Why IJM Can Outperform Peers Without a Boom
Value Investing Case Study 106-1: A fundamental analysis of IJM Corporation Bhd to assess its investment case: mix, margin, capital discipline.
IJM Corporation Berhad is no longer the sprawling conglomerate it once was. By pruning away its plantation arm in 2021, IJM has sharpened focus on four synergistic engines: Construction, Property, Industry, and Infrastructure. The result? A leaner, more disciplined operator.
From 2022 to 2025, IJM’s revenue grew at a 12% CAGR, but what stands out is that operating profit grew even faster. How? Lower fixed costs, stronger contribution margins, and smarter capital use. Vertical integration shields it from supply volatility, while recurring concession income from toll roads and ports anchors cash flow stability.
Peers like Gamuda, Sunway, and WCT share overlapping business models, yet IJM consistently scores among the top in EBIT margins, cash flow resilience, and balance sheet strength. Its Achilles heel has been shrinking EPS. But that is a solvable challenge if it maintains cost discipline and executes well on higher-value projects.
IJM’s real advantage lies in repeatable fundamentals: tighter working capital, and capital efficiency that has been trending up post-2022. In a mature domestic market, that is exactly what separates the “good” from the “great.”
So, what is the catch? That is where things get interesting. My full analysis dives into whether today’s market price leaves room for upside it or if the stock is already fully priced.
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Disclaimer & DisclosureI am not an investment adviser, security analyst, or stockbroker. The contents are meant for educational purposes and should not be taken as any recommendation to purchase or dispose of shares in the featured companies. Investments or strategies mentioned on this website may not be suitable for you and you should have your own independent decision regarding them.
The opinions expressed here are based on information I consider reliable but I do not warrant its completeness or accuracy and should not be relied on as such.
I may have equity interests in some of the companies featured.
This blog is reader-supported. When you buy through links in the post, the blog will earn a small commission. The payment comes from the retailer and not from you.
Disclaimer & Disclosure
I am not an investment adviser, security analyst, or stockbroker. The contents are meant for educational purposes and should not be taken as any recommendation to purchase or dispose of shares in the featured companies. Investments or strategies mentioned on this website may not be suitable for you and you should have your own independent decision regarding them.
The opinions expressed here are based on information I consider reliable but I do not warrant its completeness or accuracy and should not be relied on as such.
I may have equity interests in some of the companies featured.
This blog is reader-supported. When you buy through links in the post, the blog will earn a small commission. The payment comes from the retailer and not from you.
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