OSK Research has estimated that IJM Corporation Bhd's order book will surge by up to 70 per cent from RM4.1 billion currently, boosted by the approval of two highway jobs from the government.
In a research note today, OSK said the highway jobs, the New Pantai Expressway extension and West Coast Expressway (WCE) construction, is expected to contribute up to RM2.9 billion to the order book value.
Given that the WCE contact was given to Kumpulan Europlus Bhd, a 22.7 per cent associate of IJM, the construction company has a decent chance of bagging some of the packages, it added.
Aside from highway jobs, it said IJM has also tendered for the light rail transit extension, and is expected to bid for some portion of the Sungai Buloh-Kajang mass rapid transit which could also boost the order book value.
However, despite all the positive news, OSK has reduced IJM's financial year 2011 forecast earnings by 15.5 per cent to RM380.8 million, due to the possibility of a RM70 million provision for its construction division in the fourth quarter of the financial year.
The provision was related to overdue claims from its Middle East and India jobs, it said. - Bernama
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