IJM Corporation Berhad Proposes Renewal of Share Buy-Back Authority: What Investors Need to Know

Key Highlights from the Share Buy-Back Statement

• Proposal for Renewal of Share Buy-Back Authority: IJM Corporation Berhad (“IJM” or “the Company”) is seeking shareholder approval at its upcoming 42nd Annual General Meeting (AGM) on 27 August 2026 to renew its authority to repurchase up to 10% of its total number of issued shares from the open market.
• Significant Financial Resources: The buy-back will be funded by the Company’s internally generated funds and/or borrowings, not exceeding the sum of retained profits. As of 31 March 2026, IJM’s retained profits stood at RM1.287 billion, with a total of 3,647,566,120 issued shares (including 142,400,000 Treasury Shares).
• Duration of Authority: The renewed authority, if approved, will remain valid until the next AGM, the expiration of the period within which the next AGM is required by law to be held, or until revoked/varied by shareholders in a general meeting, whichever comes first.
• Current Treasury Shares: IJM currently holds 142,400,000 shares as Treasury Shares and has not purchased, resold, transferred, or cancelled any shares in the preceding 12 months.

Important Details for Shareholders

• Potential Impact on Share Value and EPS: The buy-back may have a positive impact on IJM’s Earnings Per Share (EPS) as the reduction in the number of shares in circulation will increase the EPS, assuming all other factors remain constant. This could potentially enhance shareholder value and may support the share price.
• Effect on Dividend Policy: The buy-back will increase the effective dividend rate as dividends will be paid on a reduced number of shares. However, it could also reduce the cash available for dividends, depending on the Company’s decision to allocate funds for share repurchases versus dividend payouts. The Company may also choose to distribute Treasury Shares as dividends.
• Regulatory Compliance and Shareholding Spread: IJM’s public shareholding spread was approximately 65.37% as of 30 June 2026 and will remain above the 25% threshold required by Bursa Malaysia even after a full buy-back, assuming all shares are purchased from public shareholders.
• Risk Factors: The buy-back could reduce the Company’s financial resources, potentially causing the Group to forego future investment opportunities or reduce income from interest-bearing deposits. If borrowings are used, the Company’s net cash flow may decline due to interest costs. However, resale of purchased Treasury Shares at prices higher than the purchase price could offset these reductions.
• No Code Implications: The Board does not foresee any implications under the Malaysian Code on Take-Overs and Mergers as a result of this buy-back exercise.

Potential Price-Sensitive Information

• Share Buy-Back as a Market Signal: The renewal of the buy-back authority and the Company’s intention to utilise up to RM1.287 billion in retained profits signal strong confidence in the Company’s underlying value. Corporate buy-backs are often interpreted as a sign that shares are undervalued.
• Share Price Data: Over the past year, the Company’s shares traded between a high of RM3.13 and a low of RM2.05, with the last price at RM2.26 as of 30 June 2026.
• Directors’ and Major Shareholders’ Interests: No director, major shareholder or connected person will have any direct or indirect interest in the buy-back, except for the inadvertent increase in their shareholding percentage following the buy-back.
• Directors’ Recommendation: The Board unanimously recommends shareholders to vote in favour of the resolution, stating that the renewal is in the best interests of the Company.

What Should Investors Watch?

• Monitor the AGM outcome on 27 August 2026 for whether the buy-back authority is renewed.
• Watch for announcements regarding the actual execution of share buy-backs, as these transactions can tighten share supply and potentially support the market price.
• Consider the possible impact on future dividend payments and the Company’s capital allocation priorities.
• Track the Company’s financial statements for updates on the use of retained profits and any borrowings undertaken for the buy-back.

Conclusion

The proposed renewal of the Share Buy-Back Authority is a significant corporate action by IJM Corporation Berhad, reflecting confidence in the Company’s prospects and its commitment to enhancing shareholder value. The authority to repurchase up to 10% of issued shares, backed by a sizeable RM1.287 billion in retained profits, could have a meaningful impact on share price, EPS, and dividend policy. Investors should closely monitor developments and consider the implications for their holdings.

Disclaimer: This article is based on publicly available documents and is for informational purposes only. It does not constitute investment advice. Investors should consult their financial advisers before making any investment decisions. The author and publisher accept no liability for any loss arising from reliance on this article.

Versi Bahasa Malaysia

IJM Corporation Berhad Cadangkan Pembaharuan Kuasa Pembelian Balik Saham: Perkara Penting Untuk Pelabur

Sorotan Utama daripada Penyata Pembelian Balik Saham

• Cadangan Pembaharuan Kuasa Pembelian Balik Saham: IJM Corporation Berhad (“IJM” atau “Syarikat”) sedang memohon kelulusan pemegang saham pada Mesyuarat Agung Tahunan (AGM) ke-42 pada 27 Ogos 2026 untuk memperbaharui kuasa membeli balik sehingga 10% daripada jumlah saham terbitan di pasaran terbuka.
• Sumber Kewangan Kukuh: Pembelian balik akan dibiayai oleh dana dalaman dan/atau pinjaman, tidak melebihi jumlah keuntungan tertahan. Sehingga 31 Mac 2026, keuntungan tertahan IJM berjumlah RM1.287 bilion, dengan jumlah saham terbitan 3,647,566,120 (termasuk 142,400,000 Saham Perbendaharaan).
• Tempoh Kuasa: Kuasa yang diperbaharui akan kekal sehingga AGM seterusnya, tamat tempoh di mana AGM seterusnya diperlukan oleh undang-undang, atau sehingga dibatalkan/dipinda oleh pemegang saham dalam mesyuarat agung.
• Saham Perbendaharaan Semasa: IJM kini memegang 142,400,000 saham sebagai Saham Perbendaharaan dan tidak membeli, menjual semula, memindahkan atau membatalkan mana-mana saham dalam 12 bulan terdahulu.

Perkara Penting untuk Pemegang Saham

• Kesan Potensi Terhadap Nilai Saham dan EPS: Pembelian balik boleh memberi kesan positif kepada Pendapatan Sesaham (EPS) kerana pengurangan jumlah saham beredar akan meningkatkan EPS, seterusnya boleh meningkatkan nilai pelaburan pemegang saham dan menyokong harga saham.
• Kesan Terhadap Dasar Dividen: Kadar dividen efektif akan meningkat kerana dividen dibayar atas baki saham terbitan, tetapi jumlah tunai untuk dividen boleh berkurangan bergantung kepada peruntukan dana untuk pembelian balik. Syarikat juga boleh memilih untuk mengagihkan Saham Perbendaharaan sebagai dividen.
• Pematuhan Peraturan dan Penyebaran Pegangan Awam: Penyebaran pegangan awam ialah kira-kira 65.37% pada 30 Jun 2026 dan akan kekal melebihi ambang minimum 25% yang diperlukan Bursa Malaysia selepas pembelian balik penuh.
• Faktor Risiko: Pembelian balik boleh mengurangkan sumber kewangan syarikat dan peluang pelaburan masa depan. Jika dibiayai melalui pinjaman, aliran tunai bersih akan berkurang akibat kos faedah. Namun, penjualan semula Saham Perbendaharaan pada harga lebih tinggi boleh meningkatkan sumber kewangan.
• Tiada Implikasi Kod Pengambilalihan: Lembaga tidak menjangkakan sebarang implikasi Kod Pengambilalihan akibat tindakan ini.

Maklumat Sensitif Harga Potensi

• Pembelian Balik Sebagai Isyarat Pasaran: Tindakan ini menunjukkan keyakinan pengurusan terhadap nilai asas syarikat dan boleh dilihat sebagai petanda saham dinilai rendah.
• Data Harga Saham: Dalam tempoh setahun lalu, harga saham tertinggi ialah RM3.13 dan terendah RM2.05, dengan harga terakhir RM2.26 pada 30 Jun 2026.
• Kepentingan Pengarah & Pemegang Saham Utama: Tiada pengarah, pemegang saham utama atau individu berkaitan mempunyai kepentingan terus atau tidak langsung dalam pembelian balik ini, kecuali peningkatan peratusan pegangan akibat pelaksanaan pembelian balik.
• Cadangan Lembaga: Lembaga Pengarah secara sebulat suara mengesyorkan pemegang saham untuk menyokong resolusi ini kerana ia dianggap demi kepentingan terbaik syarikat.

Apa Yang Perlu Diperhatikan Pelabur?

• Pantau keputusan AGM pada 27 Ogos 2026 sama ada kuasa pembelian balik diluluskan.
• Ikuti pengumuman berkenaan pelaksanaan sebenar pembelian balik kerana ia boleh mempengaruhi harga saham.
• Pertimbangkan impak terhadap pembayaran dividen dan keutamaan peruntukan modal syarikat.
• Rujuk penyata kewangan syarikat untuk perkembangan lanjut mengenai penggunaan keuntungan tertahan dan pinjaman.

Kesimpulan

Cadangan pembaharuan Kuasa Pembelian Balik Saham merupakan tindakan korporat penting oleh IJM Corporation Berhad dan mencerminkan keyakinan terhadap prospek syarikat dan komitmen terhadap pemegang saham. Kuasa untuk membeli semula sehingga 10% saham terbitan, disokong keuntungan tertahan RM1.287 bilion, boleh memberi kesan ketara kepada harga saham, EPS dan dasar dividen. Pelabur wajar memantau perkembangan ini secara dekat.

Penafian: Artikel ini berdasarkan dokumen awam dan untuk tujuan maklumat sahaja. Ia bukan nasihat pelaburan. Pelabur dinasihatkan mendapatkan nasihat kewangan sebelum membuat keputusan pelaburan. Penulis dan penerbit tidak bertanggungjawab atas sebarang kerugian akibat kebergantungan kepada artikel ini.

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