CIMB Securities: Sunway-IJM to merge with multiple synergies
Do read for the latest news about these two famous developer brands in NST.
Article in nst.com.my. The merger between Sunway Bhd and IJM Corp Bhd is expected to generate multiple synergies and form Malaysia’s largest property and construction conglomerate, enhancing its ability to compete on a regional scale, CIMB Securities Sdn Bhd said.
The firm stated that the merged entity is expected to record pro forma revenue of RM17 billion and a net profit of RM1.8 billion, assuming a 24 per cent corporate tax rate, based on the last twelve months’ (LTM) performance.
According to CIMB Securities, data from Sunway’s financial year 2024 (FY24) annual report and IJM’s financial year 2025 annual report indicate that the combined land bank of 2,302 hectares and order book of RM13 billion would be 2.4 times larger than Sunway’s standalone figures as of FY24.
“Sunway’s proven build-own-operate property model, which commands higher margins, could elevate returns from IJM’s urban residential projects. Do read the article in full here: Article in nst.com.my
When two teams become one…
It’s always important to note that when two different companies merge, there are also bound to be duplicates when it comes to roles. It’s not usual for a merged entity to have two CEOs… two COOs… two CFOs… etc. So, all these would need to be sorted out. Yes, I do look forward to these future news too. At the moment, this is just the starting point.
What are your thoughts? Do you think these mega mergers are just starting to pan out? We do have many more of the larger property and construction giants in the industry too. Personally, I do not wish that the industry should only have a few dominant players. I would prefer to have more developers, more choices, more competition. In markets where supply is harder to come by or when the few property developers control the whole market, it will not be healthy for the property buyers.
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