The Edge Daily, 17 December 2007 – InsiderAsia's Model Portfolio - Week 251

The Edge Daily, 17 December 2007

The two-week rally that started in late November ended rather abruptly last week.

The preceding two weeks had seen fairly strong gains for global bourses, following the major November global sell-off. The gains had been fuelled by anticipation of a US interest rate cut and a US government bailout plan for subprime mortgages.

Now that both of these have come to pass, investors have started to worry again — which was to be expected as a host of external uncertainties remain.

Indeed, the sell-off last week started with the US Federal Reserve's rate cut decision on Tuesday. Ironically this was the same pattern earlier, as the November global sell-off started right after the last Halloween rate cut at the end of October.

The Fed cut interest rates by 25 basis points. While the cut was expected, some had hoped for an even larger 50 basis point reduction. More importantly perhaps, the Fed's accompanying statement failed to reassure investors that more interest cuts were on the cards. Many had hoped the Fed will cut rates aggressive to avert a recession.

While the US economy is showing signs of weakening, inflationary pressures are rising as well, especially with current high energy and commodity prices.

Data released on Thursday showed the US Producer Price Index data, which measures inflation at the wholesale level, rose by 3.2% in November, the highest rise in over three decades.

On Tuesday, Wall Street greeted the Federal Reserve's decision with a 294-point drop for the Dow Jones Industrials Average index. That sent regional markets plunging on Wednesday, and the KLCI was on a losing streak towards the end of the week.

The market malaise has prompted the Fed and other central banks to pump in more liquidity to avert a credit crunch. But that, in turn, is sending worrying signals for investors.

From a historic high of 1,440.4 chalked up just over a week ago, on Dec 6, 2007, the KLCI fell to below the 1,400-point mark during intra-day trading last Friday. The index ended Friday at 1,403.4 — down 30.6 points or 2.13% for the week.

Regional markets - including ours — will continue to track Wall Street's daily movements.

With much of the recent expectations of the US interest rate cut and the bailout of sub-prime borrowers already passed, investors will now have to scrutinise each piece of US economic data to assess the prospects for growth ahead.

Portfolio review

Despite the KLCI and the broader market's weakness, our model portfolio surprisingly fared very well last week.

Our basket of 12 stocks actually chalked up a decent gain of 2.01%, compared with the KLCI's fall of 2.1%. Including cash, the total portfolio value rose by a smaller margin of 1.54% to RM578,649.

The portfolio's present total value represents a significant achievement compared with our initial capital of just RM160,000. We started the model portfolio on March 3, 2003.

Our total profits are currently very substantial at RM418,649, of which just under half — or RM196,755 — have been realised from earlier investments. This represents a hefty return of 261.7% compared with our capital of RM160,000. We continue to outperform the KLCI significantly, which is up by 117% in the same period.

Last week, we had five gainers, four losers and three unchanged stocks. Three of our stocks performed very well — namely Dijaya (up 8.3%), Muhibbah (up 6.8%) and Masteel (up 2.5%). The losers were led by EON Capital (down 6.7%) and Bumiputra-Commerce (down 4.5%).

In view of the current market uncertainties, we are opting to leave our portfolio unchanged.

Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.

The Edge Daily, 10 December 2007 – InsiderAsia's Model Portfolio - Week 250

he Edge Daily, 10 December 2007

Global stock markets gained further ground last week, as investors sought new positive leads after a dismal performance in November.

The KLCI surged to a new historic high of 1,440.4 on Thursday. It slipped a little on Friday but still ended the week up 37 points or 2.7% to 1,434. This brings its total gains over the last two weeks to a significant 81 points. However, the index' gains were not reflective of the broader market, where market breadth was more mixed and trading volume remained low.

For equity markets around the world, the recent rally was a welcomed relief. November turned out to be one of the worst months in recent years, as large losses from the subprime crisis, and escalating US housing and economic problems hounded financial markets worldwide.

To be sure, these concerns remain in place, and the fears of a sharp US economic slowdown next year are quite valid, especially given the recent spate of weak economic data.

However, investors appear to have decided to put those fears on hold for now, and looked forward instead to two positives: expectations of a 25 basis-point (bp) cut in US interest rates this coming week and a US government initiated subprime bailout plan to help indebted borrowers.

The bailout plan, unveiled on Thursday, involves freezing interest rates on subprime adjustable rate mortgages so that borrowers won't face foreclosure when current low introductory rates are reset at higher levels next year. An estimated US$362 billion (RM1.21 trillion) worth of subprime mortgages are due to be reset in 2008, according to estimates.

The interest rate freeze will help delinquent borrowers and avert large-scale foreclosures. However, it will not resolve the underlying structural problems and will only delay or prolong the pain. There is no guarantee home prices, or borrowers' repayment ability, will rise substantially after the freeze period is over.
Ironically, the US government's bailout proposals are in sharp contrast to the "free market" policies and "bite the bullet, take the pain" approaches it advocated for Asia during the 1997-98 Asian financial crisis. There appears to be different prescriptions for different regions.

It can be argued that it is in the global interest to avert a slump in the US economy, and such a government initiated bailout move is necessary. Still, this sends the wrong signal. A bailout encourages more risk-taking —- as risk takers know that they will always be bailed out. And this perpetuates the continuation of an asset bubble.

Central banks and policy makers around the world should bear in mind that economic cycles consist of both up and down cycles, booms and recessions. Booms cannot last forever, and should not — or asset bubbles will be perpetuated and inflation will go out of control. This will then set the stage for an even larger fall when a down-cycle ultimately kicks in.

Portfolio review
Our model portfolio underperformed the KLCI last week, as much of the benchmark index was limited to a handful of key index-linked stocks and not reflective of the broader market's much weaker conditions.

Our basket of 12 stocks rose by 1.5%, compared with the KLCI's 2.7% rise. Including cash, the total portfolio value rose by a smaller margin of 1.1% to RM569,872.

The portfolio's present total value represents a significant achievement compared with our initial capital of just RM160,000. We started the model portfolio on March 3, 2003.

Our total profits are currently very substantial at RM409,872, of which just under half — or RM196,755 — have been realised from earlier investments. This represents a hefty return of 256.2% compared with our capital of RM160,000. We continue to outperform the KLCI significantly, which is up by 121.7% in the same period.

Last week, we had five gainers, four losers and three unchanged stocks. The gainers were led by Masteel (up 8.3%), Tanjong plc (up 4.7%), Bumiputra-Commerce (up 2.8%) and Muhibbah (up 2.3%). Losers were led by DiGi (down 4.1%) and Dijaya (down 2.2%).

Masteel was our top gainer for the week, and our decision to double up our stake last week proved to be the right one. We are confident of further gains ahead due to its cheap valuations. Our average effective cost for Masteel has been adjusted to RM1.012 for the 40,000-share stake.

We are leaving our portfolio unchanged.

Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.

NST, 2 December 2007 – Dijaya in Sungai Buloh Development

New Straits Times, 2 December 2007

A joint-venture deal struck between Dijaya Corp Bhd and a private company, Aliran Firasat Sdn Bhd, will lead to a RM200 million commercial development on 20.8-acre in Sungai Buloh.

The agreement provides Dijaya's indirect wholly-owned subsidiary, Nadi Jelita Sdn Bhd, exclusive rights to develop the land owned by Aliran Firasat into an integrated hub comprising three- and four- storey shop-offices with car-parking facilities.

Nadi Jelita and Aliran Firasat will share the profit on a 60:40 ratio, calculated on the gross development value of the development.

The land, currently vacant, has a nett book value estimated at RM65.5 million. The first phase of the project is slated for launch in the first quarter of 2008.

Note: Provided by ProQuest Information and Learning. (c) 2007 New Straits Times. All rights Reserved.

The Star, 26 November 2007 – Dijaya's trump card

The Star, 26 November 2007

HAVE you ever dreamt of living in a posh and big condominium with a grand view of the award-winning Tropicana Golf & Country Resort in Petaling Jaya?

Well, dream no more. Come early 2008, you can grab one of the 241 units of the Tropicana Grande – three blocks of 36-storey condominiums with average size of 3,000 sq ft, which will tower over all condominiums in the area.

An artist’s impression of Tropicana Avenue's retail style shop offices.

Dijaya Corp Bhd has finally thrown in its trump card by developing this high-end golf course-front condominium at a time when the high-end condominium market in the city is reaching dizzying heights.

By pricing Tropicana Grande's units at an average of about RM500 per sq ft (a third off the prices in the KLCC area), it is set to appeal to those who want a well-known location minus the spiralling prices of KLCC nor the congestion in Mont' Kiara.

“We plan to launch Tropicana Grande early next year and we are now building the show unit. We are targeting upgraders, especially young CEOs in their 30s and 40s who are looking for condominiums such as the Tropicana Grande,” said Dijaya's managing director.

He said the other target markets were investors seeking high return investment properties and foreigners who wanted to live in a resort development with golf course and club facilities.

Dijaya's MD said the Tropicana Grande was a prestigious development that promised privacy and the serenity of a golf course view. The design is planned with luxury in mind, with a built-up big enough to provide comfort living, full glass windows to capture the scenic view, a private lift that serves up to the doorstep, and a private pool.

The design is alike – two crystalline blocks with maximum transparency for the sprawling golf course view. Almost all the bedrooms are located towards the golf course view and certain units could bring the view closer by having sky gardens.

Dijaya's MD said there would also be eight units that with its own dip pool at the recreational deck on the podium floor. Some duplexes on the upper floors will also have such pools. The duplex units will have built-up areas of 4,531 sq ft to 10,359 sq ft.

An artist's impression of Tropicana Grande at the Tropicana Golf & Country Resort in Petaling Jaya

This condominium will feature, among others, smart home and security system (alarm, intercom and panic button for all units), CCTV system (at service lift lobbies, service lifts, main lobbies, car park, etc), broadband, card access and barrier gate systems, and private lifts. All bedrooms will come with attached bathrooms while the master bathroom will have an en-suite resort-styled Jacuzzi.

The development on 5.17 acres of prime resort land will have a density of 46 units per acre and a gross development value (GDV) of RM390mil.

Meanwhile, Dijaya will also launch the Tropicana Avenue (gross development value of RM205mil), comprising three blocks of nine and 11-storey lifestyle shop offices (26ft x 79ft lot size) in the northeast sector of the resort next March. It will have extensive food and beverage (F & B) outlets and a retail strip on the ground floor and strata offices on the upper floors.

The row of retail space is arranged along a pedestrian thoroughfare cum walkway that faces the food and beverage (F & B) area. Escalators are located at various points throughout this thoroughfare to allow a continuous circulation and bring shoppers to the first floor.

People can enjoy the sights of a garden and pools at the F & B area, and even the first floor retail units will benefit from this garden, as those on the first floor will be able to see the garden below through translucent glass.

The office units are arranged along an internal corridor while green pockets punctuate the floor layout as “sky gardens”, a refreshing addition to the office units.

The Sun, 19 November 2007 – New commercial hub on the cards for Sungai Buloh

The Sun, 19 November 2007

PETALING JAYA: Dijaya Corp Bhd's (Dijaya) indirect whollyowned subsidiary, Nadi Jelita Sdn Bhd (Nadi Jelita), will be jointly developing 20.83 acres of freehold land in Pekan Baru, Sungai Buloh with Aliran Firasat Sdn Bhd (Aliran).

Acquired by Aliran in 2005, the land currently has a book value of RM65.6 million. Dijaya has a 60% stake in the joint venture development comprising 173 units of 3- and 4-storey shop offices.

According to the managing director of Dijaya, the RM200-million integrated commercial development would be launched in three phases. The first phase will comprise 72 units, while the second and third phases comprise 64 units and 37 units respectively.

The first phase of the freehold project is targeted for launch within the first quarter of next year. "Our sales target for the first phase is 60 units (80%) within one month of launching," he said.

"All units fronting the busy main road of Jalan Sungai Buloh are 4-storey with a standard size of 22ft by 70ft, while the corner units are 4-storey with lot sizes of 35ft by 69ft and 35ft by 70ft. Other units are 3-storey and the standard lot sizes vary from 22ft by 69ft to 22ft by 70ft," he told theSun. All 4-storey corner units would be provided with lifts. The row facing the main road would most likely be for showrooms and banks while the inner units would be suitable forbusinesses such as food and beverage.

Besides shop offices, there would also be a 5 ½-storey multi-level car park building that wouldaccommodate 1,130 parking bays.

"We have got most of the approvals already, and construction should begin early next year," Dijaya's MD said, adding that the indicated selling price would range between RM1.1 million and RM1.6 million per unit.

"This development is being planned with the purpose of supporting the local business community and to be a leading commercial hub in the heart of Sungai Buloh," he said.

The six-year project is expected to attract investors who recognise the potential of the well-established area, businessmen from the spillover from the adjacent Bandar Baru Sungai Buloh and Bukit Rahman Putra, as well as first time investors who can afford an RM1- million freehold shop office.

According to Dijaya's MD, a preregistration exercise would be held throughout this month and next month. The second launch of the project can be expected within the first half of 2008.

My Sin Chew.com, 13 November 2007 – Dijaya Corp to develop land in Sungai Buloh

My Sin Chew.com, 13 November 2007

Dijaya Corporation Berhad reported that indirect 100%-owned unit – Nadi Jelita Sdn Bhd - had on Nov 12, 2007 entered into a JV Agreement with Aliran Firasat Sdn Bhd to develop the latter's commercial land in Pekan Baru Sungai Buloh, Petaling, Selangor.

The land measuring 20.83-acre will be developed into an integrated commercial complex subject to approval.

The estimated Sale Value of the development is estimated at RM200 million and Project Cost excluding land cost at RM110 million. The projected cash outlay by Nadi Jelita which takes into account cash flow from sales progress payments is estimated at RM40 million The land is currently vacant and is estimated to be valued at RM65.6 million.

The Edge Daily, 13 November 2007 – Dijaya enters RM200 million JV

The Edge Daily, 13 November 2007

KUALA LUMPUR: Dijaya Corporation Berhad has entered a joint-venture (JV) agreement with Aliran Firasat Sdn Bhd to develop the latter’s commercial land in Pekan Baru Sungai Buloh, Selangor, for an estimated gross development value of RM200 million.

It said yesterday that it had entered into the JV via its subsidiary Nadi Jelita Sdn Bhd to develop 8.43 hectares of land into an integrated commercial development comprising shop-offices together with car park facilities and other necessary infrastructure.

Nadi Jelita will finance the project using cash advances funded by Dijaya via internally generated funds and bank borrowings. Nadi Jelita will be responsible for all related work and should the cost exceed RM40 million, it will be borne by Aliran Firasat.

The land has a net book value of RM65.6 million and the total development cost of the project excluding land is RM110 million.

NST, 6 November 2007 – Dijaya plans RM600 million property launches

NST, 6 November 2007 – By Chong Jin Hun

DIJAYA Corporation Berhad will launch at least RM600 million worth of properties in fiscal 2008, amid plans to expand geographically and reorganise its product range to sustain earnings.

The year to December 2008 will see the unveiling of, among others, the estimated RM205 million Tropicana Avenue shop offices, and RM390 million Tropicana Grande luxury condominiums.

Both projects sit within Dijaya's existing 253-hectare upmarket Tropicana Golf & Country Resort township near the Bandar Utama enclave in Petaling Jaya.

Dijaya's upcoming property projects in Malaysia coincide with its initial real estate launches in India, the developer's first foreign venture.

It has tied up with a landowner in India to build an approximately RM800 million mixed-development project in Hyderabad.

"It is at least RM600 million locally and abroad," Dijaya managing director told Business Times in Petaling Jaya yesterday.

He said Dijaya intends to venture into Johor and Penang, the other two property hotspots in Malaysia besides the Klang Valley.

Plans are also afoot for an entry into fast-growing Vietnam.

In Johor, Dijaya plans to build commercial units and high-rise homes while in Penang, it hopes to develop landed houses.

Dijaya's MD declined to elaborate on Vietnam, only indicating that a deal could be struck within the next four months.

To sustain earnings, commercial properties will take greater prominence in Dijaya's real estate portfolio to enable the company to increase income from rental.

Initial rental boost is expected to come from the lease of company-owned retail and office space within its upcoming Tropicana Mall in Petaling Jaya.

"Our current rental income is minimal," Dijaya's MD said.

Dijaya prefers to sell its foreign offerings, but may retain strategically-located ones for lease.

Recurrent rentals offer a buffer against a cyclical real estate sector while outright property sales may fluctuate according to economic conditions.

In Malaysia, the developer still has some 243-ha of untouched land across the Klang Valley, Behrang and Bukit Mertajam.

These sites can last the company up to the next seven years. Its unbilled property sales stand at about RM250 million.

Dijaya's first half to June 2007 net profit rose 19 per cent to RM15.4 million, or 5.9 sen a share, while revenue climbed 29 per cent to RM114 million.

Shares of Dijaya dipped two per cent or three sen to end at RM1.37 yesterday, valuing the firm at RM355.6 million.

The stock has advanced 71 per cent this year, surpassing the benchmark index's 26 per cent rise.

The Sun, 26 October 2007 – Dijaya's designer suites popular with young, urban executives

The Sun, 26 October 2007 – By Yeong Ee-Wah

An artist's impression of The Tropics Designer Suites within Tropicana City

DIJAYA Corporation Berhad’s (Dijaya) The Tropics Designer Suites is proving to be popular with the young urban executives who are making up the bulk of its purchasers. The 29-storey residence is located within Tropicana City, Dijaya’s 9- acre freehold development.

Managing director of Dijaya, tells PropertyPlus: “The majority of our buyers are yuppies who want to live in the Petaling Jaya area but cannot afford to purchase a link house. We also see a trend of parents buying units for their kids.”

The Tropics, 70% sold since it was open for sale in September 2006, has also been attracting retired couples looking for “small compact units and convenience” as well as investors who appreciate the convenience of living within Tropicana City.

With a gross development value (GDV) of RM135 million, the 601 units are sized between 625 sq ft and 1,176 sq ft and are priced between RM200,000 and RM458,000. Facilities at the residence include tennis and squash courts, a gymnasium, sauna and steam room as well as a 3-in-1-combo pool on the fourth floor, which is the roof of the adjoining Tropicana Mall.

According to Dijaya's MD, the main attractions of the designer suites are their location, the convenience of a mall and the security, which uses access card entry. There are also 800 car park bays for the residents that are separated from the mall’s parking bays.

“We are also planning to provide wireless connectivity for the entire recreational floor, which is the fourth floor. Residents may even go online beside the swimming pool,” says Dijaya's MD.

Due for completion at the end of 2009, The Tropics is the residential component of the RM600-million Tropicana City development. The other components are the 3-storey Tropicana Mall and the 105,000 sq ft Signature Office Tower.

“The structure of the mall is up and we’re at the 25% stage,” Dijaya's MD states. To date, 50% of the mall has been leased. Meanwhile, the Signature Office Tower, which previously received interests from several parties for an en bloc purchase, will now be retained for lease. Construction of the office tower is at the ground floor and completion is due early in 2009.

Dijaya’s other project, the RM400 million Tropicana Grande, will be launched early next year. “We are in the final stages of planning. We will begin a registration exercise next month and construction should begin around March next year,” says Dijaya's MD.

Located within its flagship Tropicana Golf & Country Resort, the development comprises 241 units of golf course-fronting condominiums. Priced at RM400 - RM450 per sq ft, it is targeted at corporate and business high-flyers, extended families, investors, as well as foreigners and will be the last piece of the project within the Tropicana Golf & Country Resort development.

The Star, 24 October 2007 – Students check out building site

The Star, 24 October 2007 – By Vivienne Pal, photos by Chua Kok Hwa

With dark skies looming in the horizon, rain seemed imminent yet the feng shui practitioners were determined to go on with their site audit.

Armed with their notes and luo-pan, the 30 practitioners – all students of the Feng Shui Mastery programme conducted by feng shui consultant and best-selling author Joey Yap – pressed on with the final part of their programme.

Site audit: Yap (in front, in shirt and tie) surveying the land with his students.

The students came from all over the world, including Poland, South Africa and Singapore, and were given about an hour to survey the landscape before returning to present their findings to Yap.

The site audit was conducted at the construction site of the semi-detached Villa Green 3A fairway villas in Damansara Indah.

The 86 units are being built on 4.05-hectare (10-acre) of land by Damansara Impian Sdn Bhd, a joint venture company between the Dijaya Group and PKNS.

Each fairway villa consists of eight rooms and bathrooms housed within 3-storey and a built-up area of 540 sq m (6,000 sq ft).

According to Yap, the case study was a vital part of the programme, as external feng shui is more important than internal feng shui.

Feng shui practice: Students consulting the luopan during the case study in Damansara Indah.

“Knowing the land contour and formation is very important in feng shui, because the feng shui within the home should be tapped to the external,” said Yap.

“I always say, don't sweat the small stuff. If you get the big things right, then you don't have to worry so much about the small things; if the feng shui within is tapped to the external, then you can do anything you want inside the house.”

In spite of the blazing sun which came out immediately after the rain, the students went on doggedly with their task, and were seen discussing their findings in groups.

“It's not easy, but I am very interested in feng shui and have been doing it on a part-time basis,” said Sonice Chau from Singapore.

“This is our graduating class, and I am determined to succeed.”

The Sun, 23 October 2007 – Casa Indah's final phase launched

The Sun, 23 October 2007 – By Yeong Ee-Wah

Petaling Jaya: Dijaya Corporation Berhad (Dijaya) has launched the final phase of its Casa Indah condominium project, located in its Damansara Indah Resort Homes development. Comprising two 26-storey blocks (Block A and B) and two 5-storey blocks (Block C & D), the developer says Casa Indah 2, the last condo development in the project, is already more than 70% sold.

Block A and B were launched last year while C and D were put to market early this month. To date, sales have reached 60% for Block C and D.

“Our purchasers are mainly young professionals who are set to look for their first home and starting up a family,” says Dijaya’s managing director, adding that the project has also attracted investors.

The two high-rise blocks offer built-ups between 1,160 sq ft and 1,422 sq ft with a starting price of RM269,900, while the low rise blocks that come with lifts, are sized between 1,291 sq ft and 1,582 sq ft. Prices start at RM412,900. There are total of 391 units in the four blocks. Construction work has already begun and completion is expected by the end of 2009.

Casa Indah 2 features a large resort-style master bedroom, a spacious walk-in wardrobe area in the master bedroom, and flexible layout, where part of the dining area may be converted into an additional bedroom, says Dijaya's MD. Some of the units face the Sri Selangor golf course, allowing residents to enjoy the view, even from the shower.

The condominium is also equipped with facilities such as swimming pool, gym, multipurpose hall, cafeteria, nursery, children’s playground, BBQ pit and 24-hour security with access cards.

The first phase of Casa Indah is sold out except for a limited number of bumiputra units and is enjoying more than 60% occupancy since the certificate of fitness for occupation (CFO) was issued about a year ago. The developer says that rental is good, with an average sized unit of 1,200 sq ft getting anywhere between RM1,800 to RM3,000, depending on whether it is fully furnished or not. Casa Indah 1 comprises 498 units housed in two 20-storey blocks and two 3-storey blocks on 5.62-acre.

The Casa Indah condominiums are located within the Damansara Indah Resort Homes development comprising linked houses, semidees, bungalows and bungalow land. Adjacent to Tropicana Golf & Country Resort and accessible via highways such as the North Klang Valley Expressway (NKVE), Damansara Puchong Highway (LDP), Penchala Link and Sprint Highway, residents can enjoy shopping convenience as it is near major shopping complexes such as Cineleisure, Ikea, Ikano, Tesco and 1 Utama

The Edge Daily, 8 October 2007 – InsiderAsia's Model Portfolio - Week 241

The Edge Daily, 8 October 2007

After a strong finish to the third quarter, the fourth quarter started off with a bang for global equity markets. The global rally — which started after the Federal Reserve cut interest rates on Sept 18 — extended well into last week, with bell-weather index barometers in Singapore, Hong Kong and the US, among others, reaching record highs.

The local bourse’s performance mirrored that of its regional peers. For the week, the Kuala Lumpur Composite (KLCI) gained a total of 36.1 points or 2.7%, ending at 1,372.4 on Friday. This brings the benchmark index’s cumulative gains to a sizeable 83 points so far over the last three weeks.
Regional sentiment had been boosted by record high performances in Hong Kong in particular, plus a continuation of Wall Street’s rally despite the release of more soft US economic data and poor earnings from several financial firms.

Sentiment in Hong Kong had been boosted by expectations of increased Chinese investments. The Hang Seng Index had surged over 30% since Aug 20, 2007, when China allowed some of its citizens to invest directly in Hong Kong stocks. Sentiment was further boosted by the setting up of a US$200 billion (RM700 billion) Chinese state-owned fund to invest in companies with exposure to China.

The local market enjoyed the spillover regional rally, although investors were initially cautious about its sustainability. Market breadth on several occasions was not as impressive as the gains registered by the KLCI. However, sentiment improved as regional markets and Wall Street continued to hold up, and trading volume rose to over two billion shares on Friday.

Blue chips comprised most of the week’s gainers. Telekom Malaysia’s shares surged on re-quotation on Monday after announcing its demerger plans. Shares of the eight companies involved in the Synergy Drive merger exercise, including Sime Darby and Golden Hope, chalked up good gains as investors bought ahead of their suspension expected this week.

The path towards the creation of Synergy Drive is almost complete. These stocks will be delisted, and investors can then opt for new Synergy shares priced at RM5.25 each or a cash offer, which is now unattractive given that these stocks have rallied 60%-70% above the offer prices. Synergy Drive’s shares are expected to be listed at the end of November 2007.

Over in the US, economic data remained generally soft. US weekly initial jobless claims rose more than expected to 317,000, and factory orders in August fell by a larger-than-expected margin of 3.3% from a month earlier. The ISM non-manufacturing index levels fell from 55.8 to 54.8 in September, its lowest since March, but still above the 50-point expansion level.

The all-important non-farm payrolls report for September released last Friday night will set the tone for trading in the earlier part of this week. This will also set the tone for the next FOMC meeting at the end of this month, where many optimists are hoping for a further US rate cut.

Portfolio review

The model portfolio performed well again last week. However, its performance lagged that of the KLCI which was boosted largely by gains in Telekom and shares of companies involved in the Synergy Drive merger exercise, none of which we hold in our model portfolio. (We disposed of our shares in Golden Hope several months ago.)

Our basket of 13 stocks rose by 1.71%, slightly less than the KLCI’s 2.7% increase. Including cash (which was very sizeable and bears no interest income), the total portfolio value increased by 1.21% to RM580,121.

The portfolio’s present total value represents a significant achievement compared with our initial capital of just RM160,000. We started the model portfolio on March 3, 2003.

Our total profits are currently very substantial at RM420,121. Of this amount, RM196,905 has already been realised. This represents a hefty return of 262.6% compared with our capital of RM160,000. We continue to outperform the KLCI significantly, which is up by 112.2% in the same period. Last week, five of our stocks rose, six fell and two were unchanged (Tong Herr and Masteel). The top gainer of the week was also our newest portfolio entry, Kamdar Group, which rose 12.5% after we acquired it the previous week. Dijaya Corp also posted a significant weekly gain of 9.2%, with trading volume on the stock rising as well.

Other notable gainers include Bumiputra-Commerce (up 4.7%) and EON Capital (up 2.2%). Losers include DiGi (down 6%), Notion VTec (down 3.8%) and Ireka (down 2.5%). We are leaving our portfolio unchanged.

Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.

The Edge Daily, 5 October 2007 – Carrefour Malaysia to invest RM300m in expansion, which includes a new edition in Tropicana Mall

The Edge Daily, 5 October 2007

PETALING JAYA: Carrefour Malaysia will invest RM300 million in expansion and refurbishment to meet the growing demand and changing consumption patterns of the more affluent shoppers.

In a statement on Oct 4, Carrefour Malaysia said the plans next year included a new edition in Tropicana Mall, which would be the reference for all its stores.

“As a true corporate citizen of Malaysia, our long term commitment in this country is for our stakeholders, for our customers, our partners and our employees.

“We aim to always contribute towards the improvement of this country’s social and economic sectors through our strength as a multinational company. This is evident with more than RM1 billion we have invested in this country,” it said.

Carrefour Malaysia said it was responding to “market talk” that it was being sold. “We would like to clear this matter by issuing a press statement to the public to deny the rumours.”

It said since its establishment in 1994, with the opening of the first store in Subang Jaya, Carrefour had been optimistic about Malaysia and hence plans to strengthen its position in the country by opening more hypermarkets and introducing new formats to the local scene.

The Edge Daily, 27 August 2007 – InsiderAsia's Model portfolio - Week 235

The Edge Daily, 27 August 2007

Global equity markets rallied strongly last week, as the US Federal Reserve came to an unexpected rescue by cutting the discount rate and opening the window to provide more liquidity for cash-strapped US financial institutions.

This, plus the billions of additional liquidity pumped in by central banks around the world, managed to avert a major liquidity and credit crunch and reassured jittery investors - at least for now. Investors are also now hoping the Federal Reserve will cut interest rates in mid-Sept, and pave the way for an interest rate easing cycle to help the US economy.

While the worst for global financial markets may be over for now, investor sentiment remains quite fragile - as shown by the indices' alternating daily ups and downs, and relatively low trading volumes.

The KLCI had three up-days and two down-days last week, led by a 52-point surge on Monday. For the week, the benchmark index gained a total of 81.9 points or 6.9% to end at 1,273.5 - recouping the bulk of the previous week's 96.2-point loss.

Last week's rebound marks a refreshing change from four earlier consecutive weeks of steep losses that saw the KLCI losing 191 points. However, investors were still generally cautious, taking their leads from Wall Street and other global markets.
Is the volatility over? Probably not. But the worst of the selling pressure does appear over for now. The Federal Reserve's moves have provided much-needed liquidity. This in turn, has halted redemption rush fears, and lower the pressure for redemption-led selling in Asian stocks.

However, it does not stray from the fact that the US subprime problems remain and the full extent of its fallout has yet to be properly assessed.

There is also the fear that increased risk-aversion and tighter credit, combined with falling home and stock prices, could tip the US economy into a recession. The key to watch will be US consumer confidence and spending numbers for the coming months, as well as upcoming earnings for US investment banks to assess the damage.

For the near term, global financial markets do appear to have stabilised - just in time for us to celebrate Malaysia's 50th birthday this Friday.

Portfolio review

Our portfolio did very well last week. Our basket of 12 stocks surged 10.3% last week, considerably more than the KLCI's 6.9% increase. Including cash, the total portfolio value increased by a smaller margin of 6.6% to RM543,671.

The portfolio's present total value represents a significant achievement compared with our initial capital of just RM160,000. We started the model portfolio on March 3, 2003.

Our total profits remain at a very substantial RM383,671. This represents a hefty return of 240% compared with our capital of RM160,000. We continue to outperform the KLCI significantly, which is up by 96.9% during the same period.

Reflecting the market's rebound, all of our 12 stocks rose last week, marking a reversal from the previous week, where every single stock fell.

Our top gainers last week were Muhibbah Engineering (up 18.7%, and recouping some of its earlier losses due to foreign selling pressure), Masteel (up 14%) and Dijaya Corp (up 13.7%). Other notable gainers include Eon Capital (up 9.4%), Tong Herr (up 8.8%), Ireka Corp and Tanjung Offshore's warrants (both up 8.7%).

Last week, we received interim dividends of 10 sen from Tong Herr, which we have adjusted accordingly against our acquisition costs and cash balance. Our effective cost for Tong Herr is now RM1.07, compared with its current market price of RM5.55.

We are leaving our portfolio unchanged. We have already realised a substantial portion of our profits in recent weeks and escaped the major brunt of the sell-off. Our equity weighting now stands at 66.3%, a level that we are very comfortable with - even if market volatility returns.

Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.

The Edge Financial Daily, 15 August 2007 - Dijaya’s earnings set for a major boost

The Edge Financial Daily, 15 August 2007

Last Friday, we took a look at Dijaya Corp (RM1.40) and the value of its underlying assets. Dijaya is an undervalued property stock, trading well below its understated book value of RM2.16, as well as our estimated revised net asset value of RM4.09 per share. Today, we take a look at some of the company's ongoing and planned projects, and its earnings outlook.

Dijaya's ongoing & new projects are:

Tropicana Golf & Country Resort, Petaling Jaya

At Tropicana, the ongoing Casa Tropicana project comprises about 1,217 condominium units, of which around 80% have been sold. The Merchant Square five-storey shop offices launched in 2005 are fully sold and have been completed.

Future plans include Tropicana Grande - a 7-acre development of 342 condominiums with a large built-up space of 2,500-4,500 sq ft, priced at RM350-RM400 psf.

This will be launched by the end of 2007, with a gross development value (GDV) of around RM380 million. After that, the company plans to launch a lifestyle commercial project on the remaining 13-acre of commercial land.

Tropicana City, Petaling Jaya
Situated on 9.1-acre at the crossroads of the LDP and Sprint highways in SS2, the RM600 million Tropicana City project will be fully completed in 2009.

Tropicana City comprises the 601 units Tropics Designer Suites (launched in Sept 2006, about 55% sold) a 4-storey shopping mall with 390,000 sq ft of lettable space for rent and anchored by Carrefour and a 12-storey office tower with 102,000 sq ft of net lettable space to be sold en-bloc.

The shopping mall and office will be completed in the third quarter of 2008, and the Tropics Suites in 2009. Another apartment block, Casa Damansara 3, will be launched later, likely in 2008.

In adjoining Damansara Intan, 210 units of “Casa Suites” apartments are under construction, and are fully sold out since they were launched in 2005.

Damansara Indah, Petaling Jaya
Following on the success of the fully-sold-out and completed Casa Indah 1 condominiums, Dijaya launched Casa Indah 2 in early 2007, with 352 condominium units and a total gross development value of RM105 million.

Casa Indah comprises two high-rise and two low-rise blocks. The first high-rise block is 80% sold, while the second block, launched two-three months back, is 30% sold. The company will be launching the low-rise CondoVillas component soon, priced at around RM280 psf.

Also on sale in Damansara Indah are 86 units of 3-storey super-sized semi-detached homes known as Villa Green, priced from RM1.8 million with a built-up space of around 6,200 sq ft and land area of under 5,000 sq ft. These villas are around 50% sold, despite their high price tag.

Future plans include a 14-acre commercial development fronting a lake, with 500 serviced apartments and retail space, expected to be launched in 2008.

Sungei Besi, Kuala Lumpur
The company is developing Fortune Park, comprising two 22-storey apartment blocks on 24-acre. Since the launch last year, sales have hit 60%. The group is also planning medium and low-cost apartments as well as 4-storey shop offices on the land.

Hyderabad, India
Last November, Dijaya ventured overseas and signed a joint venture to develop a 25.4-acre, RM800 million residential-cum-commercial project. It has an effective 54% stake in the project, where risks are low as the land is supplied by the Indian landowner-partner, Telangana Spinning & Weaving Mills Ltd.

This venture will also provide a platform for Dijaya to expand into other parts of India, as well as other countries, such as Vietnam where the company is exploring opportunities.

Earnings outlook

For the financial year ended Dec 2006, Dijaya's net profit rose 39% to RM40.5 million, or 15.6 sen per share, on the back of revenue of RM180.3 million. This translates into trailing price-earnings (P/E) of nine times.

We expect moderate net earnings growth of 12% to RM45.4 million, or 17.5 sen per share, in 2007, underpinned by about RM217 million worth of unbilled sales, sales of unsold units at ongoing projects and the completion of several existing projects.

This places its P/E at a very undemanding eight times - or about half of the sector's average.

However, earnings growth will accelerate sharply in 2008-09, spurred by several catalysts:

1. Maiden contributions from the Indian project (its share of profits is expected at RM10-15 million in 2008, and about RM20-22 million per year for the next four-five years);
2. Sales from the Tropicana Grande condominiums, to be launched in late 2007 with a GDV of RM380 million (twice 2006 revenue);
3. Sale of the office tower in Tropicana City, with expected profit of around RM20 million; and
4. From 2009 onwards, recurring rental income from Tropicana Mall, which should provide pre-tax profits of around RM25 million annually.

Indeed, 2008 is shaping out to be a busy year. After the scheduled launch of Tropicana Grande at end-2007, the company will also be launching the third apartment block at Tropicana City (Casa Damansara 3) and the two commercial projects at Tropicana and Damansara Indah, which we have not included in our forecasts yet, as details are still sketchy.

In 2009, Dijaya will start enjoying recurring income stream from its shopping mall, plus one-off profits from the sale of the tower block at Tropicana City. If the building is sold for RM400 psf, the potential profit is about RM200 psf or RM20 million.

We expect Dijaya's net profit to rise 51.7% to RM68.8 million in 2008 and 20.3% to RM82.8 million in 2009. With 2008-09 earning per share of 26.5 sen and 31.9 sen, respectively, Dijaya's shares are potentially trading at very low P/Es of 5.3 and 4.4 times 2008-09 earnings, and just 0.5 time book value by end-2009.

Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.

The Edge Daily, 14 August 2007 – Dijaya 2Q net profit jumps 26 percent

The Edge Daily, 14 August 2007

KUALA LUMPUR: Dijaya Corporation Berhad’s net profit for the second quarter ended June 30, 2007 jumped 26.13% to RM8.93 million from RM7.08 million a year ago on the back of stronger revenue of RM62.64 million from RM56.38 million.

It said yesterday revenue rose 11.1% to RM62.6 million in 2Q due to higher earnings contribution from the group’s real property development projects.

For the first six months, Dijaya’s net profit rose 19.01% to RM15.37 million from RM12.91 million in 2Q06, while revenue rose 28.85% to RM113.98 million from RM88.46 million.

The Sun, 13 August 2007 – Resort-style luxury at Tropicana Grande

The Sun, 13 August 2007 - By Yeong Ee-Wah

Petaling Jaya: Large built-up, full glass windows to capture the scenic view of the golf course, sky gardens coupled with five-star resort-style facilities, Tropicana Grande will be Dijaya Corporation Berhad (Dijaya)’s finishing touch to its Tropicana development, said Dijaya Corporation executive director, Quek Cham Hong.

Located within Dijaya Corporation’s flagship development, the Tropicana Golf & Country Resort, the high-end golf course-fronting condominium takes up 5.2-acre of leasehold land and has a gross development value (GDV) of RM400 million.

Targeted for launch by the first quarter of 2008, the condominium is awaiting approval from the authorities.

The project is a low-density development with big built-ups and private pools (for selected units), said Quek. He also added that all the units will have views of the golf course.

Tropicana Grande has a density of 46 units per acre, with a total of 241 units housed in three towers; two 36-storey towers and one 35-storey tower.

These units will have an average built-up of 3,000 sq ft.

Each tower will have a combination of typical and duplex units. The typical units are sized between 2,500 and 3,000 sq ft while the duplexes would be sized between 3,500 and 4,500 sq ft.

“There will be two units on each floor, with a private lift lobby for each floor. There will also be a service lift for hired help such as maids and repairman,” added Quek.

These lifts are also equipped with card access readers, whereby the lift cars will only stop at pre-designated floors to provide security and privacy to the residents.

According to Quek, penthouse duplex units have been planned for the top floors. With six plus two bedrooms and eight bathrooms plus one powder room, these units will come with a private pool and Jacuzzi on a large roof deck.

“These units allow large families to live under one roof and yet still have privacy,” said Quek, adding that its entertainment and living areas are designed with flexibility in mind to cater to a wide range of functions.

Dijaya Corporation’s managing director, said Tropicana Grande is designed to cater to a range of consumers including corporate and business high flyers, extended families that are looking to upgrade to a larger home with exclusive requirements, investors seeking high-return investment properties as well as foreigners.

“We are targeting people in their mid-40’s onwards, as well as large families since our units are big enough to accommodate them,” added Dijaya's MD.

With an average selling price of close to RM400 - 450 per sq ft, a condominium unit comes with a wide range of features such as air-conditioning, water heater, CCTV surveillance and a home security system consisting of an alarm, intercom and panic button. All units are also broadband enabled.

The resort-style condominium is accessible via major highways such as the Damansara-Puchong Highway, Sprint Highway, North Klang Valley Expressway (NKVE) and Penchala Link.

The Edge, 10 August 2007 - Dijaya Corp is very undervalued

The Edge, 10 August 2007

Property stocks have been among the local bourse’s best performers this year, spurred by several factors, notably government incentives such as the relaxation of Foreign Investment Committee (FIC) guidelines for foreign purchasers of properties costing above RM250,000 and more importantly, the lifting of real property gains tax (RPGT) from April 1, 2007.

Dijaya Corp (RM1.40) is shaping up to be one of the sector’s cheapest stocks —both from asset valuation and earnings basis, trading at single digit P/E valuations and a significant 35% discount to its book value of RM2.16, which itself is severely understated due to very low land costs. We estimate its RNAV closer to RM4.09 per share, or nearly three times the current share price.

Large land bank
Dijaya is synonymous with the development of the 250ha Tropicana Golf & Country Resort, which pioneered gated luxury living in the Klang Valley in the early 1990s. The company’s other projects include the adjoining 163.6ha Damansara Indah Resort Homes, the ongoing Tropicana City development in Petaling Jaya, Casa Damansara in SS2 and Damansara Intan Business Park.

As at end-2006, Dijaya had a large land bank totalling 349.6ha. Of this, 128.4ha are in the prime Damansara-Tropicana area in Petaling Jaya, Selangor (including the Tropicana Golf Course); 9.8ha in Sungei Besi, Kuala Lumpur, 4.4ha in Bukit Mertajam, Penang and 206.8ha of agriculture land in Tanjung Malim, Perak.

In addition, Dijaya has an effective 54% stake in a 10ha property project in Hyderabad, India, its first overseas foray. Expected to kick off in 1Q2008, the RM800 million project will start contributing in 2008, with annual profits of around RM20-RM22 million for five years.

Cash-rich balance sheet

Dijaya is also cash-rich — unusual for property developers, most of which are usually highly geared — either due to land purchases or for project financing.

As at end-2006, the company had gross cash and marketable securities of RM191.5 million and total borrowings of RM27.4 million. Of its gross cash amount, RM102.4 million is held under section 7A of the Housing Developers’ Act (for deposits and sinking funds, among others). Thus, the company itself has net cash of RM61.7 million, or a significant 23.8 sen per share.

Understated assets
Dijaya’s Klang Valley land bank is carried at very low costs. It has 103.8ha left in Tropicana (including the golf course), carried at RM119.1 million — or just RM10.54 per square foot (psf), compared with current market values of around RM150 psf. In Damansara Indah, it has 20.3ha carried at RM22.5 million, or just RM10.15 psf — compared with current prices of around RM130 psf.

The remaining Tropicana and Damansara Indah development land bank, totalling around 28.4ha, is very valuable as it represents some of the most strategically located plots left in the area, and will feature high-end condominiums as well as commercial and retail projects with a high gross development value.

Most of the remaining Tropicana land bank is located along Persiaran Tropicana, the main thoroughfare leading to the Tropicana entrance. The Damansara Indah land bank includes valuable commercial land fronting Dataran Sunway and Persiaran Surian, the main commercial hub of the Kota Damansara area; as well as some facing the Seri Selangor Golf Course.

RNAV of RM4.09 per share
We estimate Dijaya’s RNAV at RM4.09 (see table). We arrived at this by revaluing the remaining 8ha left for development in Tropicana to RM150 psf. We have not revalued the golf course. It would not be prudent to do so, since the golf course cannot be redeveloped, although the land cost of RM10.54 psf is far too low.

We have also revalued the Damansara Indah land to RM120 psf, the Tropicana City and the Penchala land from an average of RM163 psf to RM250 psf, and Sungei Besi from RM2.35 psf to RM30 psf. We have not revalued the Tanjung Malim and Penang land.

We have also included its share of the net present value of projected profits from the Indian project, worth RM64.8 million, or 25 sen per share. These will result in a total revaluation surplus of RM500.7 million, or RM1.93 per Dijaya share (there are 259.5 million shares issued). Adding this to its end-2006 NTA of RM2.16, we arrive at an RNAV of RM4.09 per share.

Next week, we will take a closer look at some of Dijaya’s ongoing and planned future projects, as well as its earnings prospects over the next few years.

Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.

The Edge, 6 August 2007 - Value in Dijaya’s land

The Edge, 6 August 2007

Property developer Dijaya Corporation Berhad does not appear on the radar screen of equity analysts.

The company feels it is not ready to call analysts in for a briefing until it has built up its landbank, its MD said in an interview.

It is not surprising, therefore, that Dijaya’s share price has barely moved in recent months, despite the rally in property stocks.

"Established property developers are trading at two to three times book, some even above revised net asset value (RNAV)," says InsiderAsia, an independent research outfit, in a recent report.

As for Dijaya, its share price is now trading significantly below its net book value and estimated RNAV. Dijaya’s share price closed at RM1.42 last Friday. At this price, the stock is trading at about 34% discount to its book value of RM2.16.

InsiderAsia believes the value of land owned by Dijaya is severely understated in its accounts, as its Klang Valley landbank is carried at very low cost.

The company 259.6-acre of land left in Tropicana is booked in at RM119.1 million, or only RM10.54 per sq ft (psf), compared with the current market value of about RM150 psf.

Meanwhile, Dijaya’s 50.8-acre of land in Damansara Indah is valued at RM22.5 million, or at RM10.15 psf, compared with the market price of about RM130 psf.

There are 20-acre of land yet to be developed in Tropicana. The remaining 200-acre of land are not for development, as they are being used for a golf course.

In the next two years, the company will be unlocking the value of all this land by launching several property projects.

In Tropicana Golf & Country Resort, the company will be launching 400 units of low-rise condominiums with an average built-up of 2,500 sq ft each and an indicative pricing of RM300 psf. The gross development value of the project of the project is RM500 million.

In Damansara Indah, Dijaya recently launched 88 units of three-storey semi-dee with built-up of about 6,200 sq ft each and priced from RM2 million per unit. Two blocks of low-rise condominiums in the same area will also be launched soon.

“The remaining Tropicana and Damansara Indah development landbank is very valuable as it represents some of the most strategically located plots left,” say InsiderAsia.

In Sungai Besi, the company is developing two blocks of apartments. Some medium and low-cost apartments, as well as shop offices, are in the planning stage.

"Based on the upcoming launches, we expect Dijaya’s profit to see a huge jump in the next two to three years," says an analyst.

In the financial year ended Dec 31, 2006, Dijaya’s net profit rose 14% to RM43.32 million from RM37.96 million a year earlier. The improved earnings were achieved despite a 29% drop in revenue to RM177.82 million from RM250.8 million a year earlier.

According to Dijaya, this better performance was made possible due to lower administrative and other expenses, tax charges and minority interests’ share of profits.

Its earnings per share (EPS) in FY2006 was 15.61 sen. Based on its share price of RM1.42 last Friday, Dijaya shares are trading at a price to EPS (PE) multiple of about nine times. By this measure too, the company is under-valued.

"Some property stocks are trading at PE multiples of 19 times. When earnings from the new projects start to contribute in the next two years, Dijaya’s single-digit PE multiples will go lower," says an analyst.

Dijaya is also building Tropicana City, valued at RM600 million, in SS2. The project comprises the three-storey Tropicana Mall, a 24-storey block of serviced apartments and a 12-storey office tower.

The mall and office tower will be ready in the third quarter of 2008 and the apartment block in 2009.

The mall is expected to bring in rental income of between RM20 million and RM30 million per annum.

"In 2009, rental income from the mall is expected to give Dijaya’s earnings another jump," says the analyst.

Dijaya has also ventured overseas. It has a stake in a joint-venture company in India. Its maiden overseas project is the development of 25-acre in Hyderabad, India. The project is scheduled for launch in the first half of 2008. The 800 million project comprises condominiums, shop offices and possibly a shopping mall. Based on Dijaya’s shareholding in the JV company, the project is expected to bring in revenue of RM400 million.

Bursa Malaysia (Value), 5 August 2007 - Dijaya’s profit to see a huge jump

Bursa Malaysia (Value), 5 August 2007

Most of the people from KL and Selangor know about Tropicana, which is among the most luxury residential area. However, most of them may not aware of the developer for this area. Tropicana is a project from Dijaya Corporation Berhad.

It appears that this developer is out of the radar of most of the investors and analysts at this moment. The company feels that it is not the time to call analysts for a briefing until it has built up its landbank,according to its MD, in an interview.

Its share price is no trading significantly lower its net book value and estimated RNAV. It closed at RM1.42 last Friday and this stock is trading at about 34% discount to its book value of RM2.16.

InsiderAsia believes the value of land owned by Dijaya is severely understated - Tropicana: cost RM10.54 psf versus market value of about RM150 psf; and Damansara Indah: cost RM10.15 psf versus market value of about RM130 psf.

In Tropicana, the company will be launching 400 units of low-rise condo with an indicative pricing of RM300 psf. The GDV is RM500 million.

In Damansara Indah, Dijaya launched 88 units of three-storey semi-dee with built up of about 6,200 sq ft and priced from RM2 million each. Two blocks of low-rise condo in the same area will be launched soon.

"Based on the upcoming launches, we expect Dijaya's profit too see a huge jump in the next two to three years" says an analyst.

Dijaya is also developing Tropicana City, valued at RM600mil in SS2. Tropicana City comprises 3-storey Tropicana Mall, a 24-storey block of serviced apartments and a 12-storey office tower.

The mall and office tower will be ready by third quarter of 2008 and the apartment block in 2009. The mall is expected to bring in rental income of between RM20 million to RM30 million per annum.

Lastly, Dijaya also has a stake in a JV company in India. It is developing a 25 acres land in Hyderabad, India and it is scheduled for launch in the 1H of 2008. Base on the stake in the JV company, the project is expected to bring in revenue of RM400 million.

Technical Analysis on KLCI (Exhaustive Chart Analysis Corner), 5 August 2007 – Dijaya Corp

Technical Analysis on KLCI (Exhaustive Chart Analysis Corner), 5 August 2007 – Dijaya Corp

With NCER being the talk of the town lately, let's not forget one good counter from the property sector Dijaya Corp. With a sizeable and valuable land bank in Klang Valley, this counter is expected to have an increase profit in the next couple of years. This counter is under-rated for sure and is trading at RM1.42 as of last Friday. With RM1.39 serving as the first support level followed by RM1.32, unless this level give way, I think it's about time to get your bullet ready.

For the entry, the market's going to be volatile next week no doubt about that.

With a book value at about RM2.18, this stock is trading about 35% discount but the upside will take time. Therefore, anything below $1.4 is a good buy. Hence, entry point is crucial and this is the time I can say that somehow time is on our side.

The choice is yours.

The Edge Financial Daily, 16 July 2007 & Portfolio review & strategy

The Edge Financial Daily, 16 July 2007

Stock prices on Bursa Malaysia closed broadly higher last week, although day-to-day trading was quite volatile.

A strong rally on Wall Street late in the week lifted the Dow Jones Industrials Average and S&P indices to new record highs. On Thursday, the Dow Jones Industrials Average Index surged 284 points — its biggest one-day gain in four years. This pulled regional markets along with it, with the South Korean, Hong Kong and Singapore key market indices all hitting record highs.

Following the gains of the previous week, the KLCI started the week on a positive footing. However, it lost ground on Tuesday and Wednesday — falling some 20 points in two days, before staging a strong recovery on Thursday and Friday. Following Wall Street’s lead, the Kuala Lumpur Composite Index (KLCI) surged 18.7 points on Friday to end the week at 1,384.72, up a total of 10.3 points or 0.75%.

Despite concerns over high crude oil prices (hovering at 10-month highs of nearly US$73 [RM251.50] per barrel) and the US subprime market, investors on Wall Street focused instead on more merger and acquisition (M&A) activities, as well as better-than-expected sales at WalMart Stores, the US’ largest retailer and an important indicator of consumer spending.

On the local front, M&A speculation drove up the shares of EON Capital. Construction and infrastructure stocks also did quite well on expectations of more infrastructure contracts. Muhibbah Engineering was one of the week’s top gainers after it secured a RM1.1 billion contract to build the South Klang Valley Expressway.

Buying Dijaya Corp

We are buying 50,000 shares of Dijaya Corp at Friday’s closing price of RM1.39, for a total of RM69,500. After this, we still have surplus cash of RM40,318 for future investments. As we do not impute interest income in our portfolio, we will put our surplus cash to more productive use, especially with sentiment on the local bourse staying buoyant.

Property stocks have enjoyed a strong rally in recent months, with many rising two- to threefold over the past year, spurred by the abolishment of real property gains tax, relaxation of Foreign Investment Committee guidelines for foreign purchasers and expectations of stronger demand and higher asset prices in an asset reflation environment.

One stock that has missed out on the property rally is Dijaya Corp. The stock trades at single-digit price-earnings valuations and a significant 36% discount to its book value of RM2.16, which itself is severely understated. Established property developers are trading at two to three times book, some even above revised net asset value. We estimate Dijaya’s RNAV at around RM4.09.

Dijaya may be under-researched, but the company is far from being an unknown player. It is synonymous with the development of the 625-acre Tropicana Golf & Country Resort, which pioneered gated luxury living in the Klang Valley. Its other projects include the adjoining 409-acre Damansara Indah Resort Homes, the Tropicana City development in Petaling Jaya, Casa Damansara in SS2, Damansara Intan Business Park and Casa Kiara in Mont’Kiara.

As at end-2006, the cash-rich company has a large land bank totalling 874-acre. Of this, 321-acre are in the prime Damansara-Tropicana area in Petaling Jaya, Selangor; 24.5-acre in Sungei Besi, Kuala Lumpur; 10.9-acre in Bukit Mertajam, Penang; and 517-acre of agriculture land in Tanjung Malim, Perak.

In addition, Dijaya has an effective 54% stake in a 25-acre property project in Hyderabad, India. Expected to kick off later this year, the RM800-million project will start contributing in 2008, with annual profits of around RM20 million to RM22 million, for five years.

Dijaya’s Klang Valley land bank is carried at very low costs. It has 259.6-acre left in Tropicana (including the golf course), carried at RM119.1 million — or just RM10.54 psf, compared with current market values of around RM150 psf. In Damansara Indah, it has 50.8-acre carried at RM22.5 million, or just RM10.15 psf — compared with current prices of around RM130 psf.

The remaining Tropicana and Damansara Indah development land bank, totalling around 71-acre, is very valuable as it represents some of the most strategically located plots left, and will feature luxury condominiums and commercial and retail projects with a high gross development value.

RNAV of RM4.09 per share

We estimate Dijaya’s RNAV at RM4.09 — nearly three times above the current share price. This is done by re-valuing the remaining 20 acres left for development in Tropicana to RM150 psf (it would not be prudent to revalue the golf course), the Damansara Indah land to RM120 psf, the Tropicana City and Penchala land from an average of RM163 psf to RM250 psf, and Sungei Besi from RM2.35 psf to RM30 psf. We have not revalued the Tanjung Malim and Penang land.

We have also included its share of the net present value of projected profits from the Indian project, worth RM64.8 million, or 25 sen per share. These will result in a revaluation surplus of RM500.7 million, or RM1.93 per Dijaya share (there are 259.5 million shares issued). Adding this to its end-2006 NTA of RM2.16, we arrive at an RNAV of RM4.09 per share.

Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.

The Edge, 18 June 2007 - Dijaya changing direction

The Edge, 18 June 2007

Dijaya Corporation Berhad, long known for its flagship 625-acre Tropicana Golf & Country Resort in Petaling Jaya, has a busy schedule ahead. Besides looking for land in the Klang Valley for niche developments, it is eyeing India and Vietnam for its future earnings base and will be boosted by recurrent income from some of its commercial developments.

The appointed managing director of Dijaya on May 10, tells City & Country that on the local front, the remaining landbank of the group in Petaling Jaya will be fully developed in seven years. "Over the next two to three years, a lot more things will be happening for us on the local front. Based on current pricing we've over RM1.3 billion in GDV [gross development value] coming up," he says.

Together with Dijaya executive director Quek Cham Hong, Dijaya's MD have been busy sourcing for new developments. He acknowledges that Dijaya does not appear on the radar screen of analysts. "Whatever we're doing both locally and abroad, including retaining portions of commercial developments, is part of the plan to add to the earnings base of the group, going forward," he says.

Land acquisition and recurring income priority

"We've to change direction... we've been concentrating primarily on our existing developments since Tan Sri Danny Tan Chee Sing, acquired the land in a privatisation scheme more than 15 years ago," Dijaya's MD notes.

Tan Sri Danny Tan Chee Sing is Dijaya's group chief executive officer of Dijaya and largest shareholder.

Clearly, the priority going forward is land acquisition, joint ventures and recurring income from retained portions of developments, such as the ongoing Tropicana Mall (part of the 9-acre freehold Tropicana City project in SS2). From a back-of-the-envelope calculation, Dijaya MD says Tropicana Mall will provide a recurring income of RM20 million to RM30 million yearly.

The RM600 million Tropicana City comprises of 3-storey Tropicana Mall, a 29-storey block of serviced apartments (The Tropics designer suites) and a 12-storey office tower with approximately 105,000 sq ft of net lettable area. The mall will be ready in the third quarter of next year and the Tropics serviced apartment will be ready in 2009.

"For Dijaya, the focus remains in the Klang Valley where we hope to acquire land of a few acres for smaller developments in which we can achieve a fast turnaround time," Dijaya's MD says.

In Tropicana Golf & Country Resort, the group will unveil Tropicana Grande on the 5.2-acre parcel of residential land early next year. This phase comprises 241 luxurious condo units fronting the golf course with an average built-up of 3,000 sq ft and an indicative pricing of RM400 - RM450 psf. The GDV of this project is RM400 million. A recent completed phase within the resort is Merchant Square, comprising two blocks of 5-storey shop offices with lifts and all have been sold.

Dijaya MD says the remainder of the land in Damansara Indah will be developed over the next two years while the group is still finalising the plans for the last 20-acre of commercial land by the Seri Selangor Golf Club lake opposite Sunway Damansara. There are plans to launch a commercial centre with serviced residences on an 11-acre site.

The most recent launch in Damansara Indah comprised 86 units of 3-storey semi dees known as Villa Green 3A with typical built-up of 6,146 and 6,206 sq ft and priced from RM1.95 million. It is over 50% sold since the launch earlier in the year.

An upcoming launch is Casa Indah 2, the 5-storey low-rise blocks. The earlier two 26-storey high-rise blocks with 352 units are over 70% sold. Neighbouring Casa Indah 1, comprising two 19-storey blocks and two 5-storey blocks, is all sold except for Bumiputra units.

Over in Sungei Besi, the group is developing Fortune Park, a serviced apartment phase, comprising two 22-storey blocks fronting the breathtaking lake view of Mines Resort. Sales have hit 60% and the group is also planning new apartments phases as well as 4-storey shop offices for the parcel.

The developer may venture into Penang where the group is now the project manager for Ivory Properties Group's Island Resort in Batu Feringgi, a 20-acre RM234 million development comprising landed properties and serviced residences. Besides that, the group has an 11-acre freehold parcel in Bukit Mertajam.

Dijaya's MD says Dijaya also owns 517-acre of freehold land in Ulu Behrang near Proton City that will take some time to develop, as demand there is limited.

Going overseas

India and Vietnam have lots of potential while China is a bit risky, Dijaya's MD says. "Our concern is more on the GDV and the profitability," Quek chips in. Dijaya will mostly enter joint ventures with landowners due to their connections with the authorities and the land cost, which may be prohibitive.

Land is not cheap in either country. Although they're comparatively less well off, land prices are higher there than in Malaysia, Dijaya's MD points out. "Malaysian developers have a good reputation in India; our aim is to build our reputation over there and instil confidence in the market," he says. "They're comfortable with us and reputable foreign partners bring a 20% to 25% premium to the price of properties. It's a developer's market over there."

Late last year, Dijaya signed a development agreement with landowner Telangana Spinning & Weaving Mills Ltd, with Dijaya holding a 54% stake in the joint venture, Dijaya-Malind JV (Mauritius) Ltd. Its maiden foreign property venture involves the development of a 25.4-acre parcel in Hyderabad, India.

Dijaya's says this will be launched by the first half of next year. With a GDV of RM800 million, the currently unnamed mixed development will comprise six to eight 15 to 18-storey condominium blocks and shop offices.

There may be a shopping mall, depending on the final plans, Dijaya's MD adds. The condominium units will be priced from 2,500 rupees psf.

The entire development will take six years to complete, depending on the market, and will bring in revenue of RM400 million to the group based on the share of the joint venture, Dijaya's MD says.

Other cities the group is interested in are Chennai and Bangalooru.

"There is nothing concrete yet; we've been studying several offers for developments in these cities," Dijaya's MD says.

"We've also explored Vietnam in the last two months, hopefully in the next few months something will come up. It's a hot market over there and property prices are not cheap," he says.

Vietnam is at least a decade behind China but where real estate is concerned the guidelines are very clear cut. There's no restraint on foreign participation except that foreigners are not allowed to own freehold land, so freehold land that is sold to foreigners will become leasehold until they're resold to locals, he says.

The Edge, 14 May 2007 - Candidates for going private

The Edge, 14 May 2007

The wind of privatization is blowing through Bursa Malaysia. In the past three weeks, seven privatisation proposals have been put on the table, one after another.

The companies involved are Rohas-Euro Industries Bhd, Island & Peninsular Bhd, Petaling Garden Bhd, Maxis Communications Bhd and last week, UAC Bhd, Nexnews Bhd and Berjaya Capital Bhd. Analysts expect more companies to be taken private in the near future. This is due to a more mature capital market structure that makes it easier to raise funds and a bullish environment that spurs higher rates of success for such privatisation exercises.

“Imagine if there had been an offer for Maxis last year at RM9; who would have accepted it?” asks a private investor.

In general, companies that are deemed to be ideal targets for privatisation moves share three common traits. These are good quality assets, strong free cash flow and robust earnings potential relative to their market value, says SK Securities head of research Cheah King Yoong.

Others cite strategic reasons for major owners taking their companies private.

“In the old days, entrepreneurs tended to create multiple layers in their group structure as a cheaper means of controlling and expanding their business empire. What’s happening now is that they want to reduce the layers so that the value can be reflected in the ultimate holding company,” says the private investor.

But while good quality assets and robust earnings potential are teasers for major shareholders to take their companies private, it is crucial that the target company generates strong free cash flow to help the owners to fund a privatisation move. Essentially, it boils down to weighing the cost of financing such moves against the benefits to the owners.

In Magnum Corp Bhd’s case, the cost of taking the company private may be much higher than the incremental cash flow going towards the owner Multi-Purpose Holdings Bhd. With Magnum’s present market value of RM5.34 billion, its annual free cash flow (net operating cash flow less capital expenditure) of RM268.4 million returns only about 5% to the shareholders. Even after stripping out Magnum’s net cash if RM716 million from its present market value, the annual free cash flow return is only 5.7%, which is below the average cost of borrowings.

Nevertheless, below are some of the companies that have the ingredients for going private. While the major shareholders may not have the intention to privatise these companies in the short run, the value propositions in these companies are hard to miss. Either the major shareholders will eventually resort to a drastic move, such as taking the companies private, or there will be more corporate exercises designed to unlock the value of these companies to warrant their continued listing on the exchange.

Dijaya Corp Bhd

Share price on May 10: RM1.41. Market cap: RM376.3 million. Controlling shareholder: Tan Sri Danny Tan (63.1%).

Its current market capitalisation is at a 33% discount to its net tangible assets (NTA) of RM560.6 million, or less than half of its revised net asset value (RNAV) of RM940 million as derived by analysts. The higher RNAV reflects the development potential of Dijaya’s prime landbank acquired years ago. With Dijaya’s net cash of RM164 million as at Dec 31, 2006, investors are actually valuing the company’s businesses and its prime landbank at RM212.3 million. This is not a fair value, given Dijaya’s landbank which totals 397.7ha, of which 173.6ha are in the prime Damansara-Tropicana area.

The Edge Daily, 20 April 2007 - Smart rebound, property stocks surge

The Edge Daily, 20 April 2007

Share prices on Bursa rebounded smartly on April 20 as investors took their cues from a positive overnight close on Wall Street and a rebound in other regional markets.

Regional markets had plunged sharply on April 19 on fears that China will post stronger than expected first quarter (1Q) GDP growth, and would introduce measures to cool its economy.

China did in fact announce a stronger than expected GDP growth of 11.1% for 1Q of the year. However, investors appear to have shrugged off the data as the Chinese economy has grown over 10% per year for the past four years – with several rounds of interest rate hikes in between, and has still continued to confound skeptics fearing a "hard landing" scenario.

It is more likely that investors around the region took the China factor as an excuse to lock in some profits after recent strong gains. The KLCI, for instance had surged almost uninterrupted for four weeks, and some intermittent profit-taking activities was healthy for the market's longer-term uptrend to continue.

On April 20, the KLCI rose nine points to close at 1,315.4. For the week, the benchmark index gained a total of 7.2 points or 0.6%.

Property and construction stocks led the rally. Equine led with a 30% gain. WCT Land, Malton, Sunrise and Bandar Raya surged over 10% each on heavy volume while Damansara Realty, Selangor Dredging, Tebrau, Dijaya and Talam all rose over 5% each.

Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.

Business Times, 14 April 2007 - KLCI up on last-minute buying

Business Times, 14 April 2007

Share prices on Bursa Malaysia ended mixed yesterday with the key index gaining a marginal 0.08 per cent as investors went on last-minute bargaining of property stocks after the Government announced a blueprint to boost the sector.

"Trading was still volatile. The key index stayed firm in the early session due to the steadier US stock market but came under selling pressure in the afternoon session on profit-taking," dealers said.

However, the last-minute buying of property stocks helped to push up the index marginally, a dealer said.

The Kuala Lumpur Composite Index (KLCI) settled 0.08 per cent, or 1.01 points, higher at 1,308.20.

The FBMEmas up 5.02 points to 8,774.21 while the FBM30 went up 18.00 points to 8,294.43.

Losers outnumbered gainers by 544 to 398 while 264 counters were unchanged, 178 untraded and 37 suspended.

A total of 2.038 billion shares valued at RM2.564 billion were transacted, down from Thursday's 2.128 billion shares worth RM2.991 billion.

Of the property counters, Sunrise and Dijaya Corp rose 16 sen each to settle at RM3.28 and RM1.49 respectively while KLCC Propert moved up 12 sen to RM3.84.

The dealer said that plantation counters also continued their rise on expectations of further increase in crude palm oil prices.

PPB Oil climbed 60 sen to RM15.70, IOI Corp rose 30 sen to RM25.00 and Kuala Lumpur Kepong rose 20 sen to RM13.00.

Topping the actives list, Marco and its warrants edged up 1.5 sen each to 25.5 sen and 15 sen respectively while GPA Holdings increased half sen to 40.5.

Mulpha-warrants and Genting-call warrants eased half sen each to 67 sen and 11 sen respectively.

Of the heavyweights, Maybank declined 10 sen to RM12.40 while Telekom fell 10 sen to RM10.30 and Tenaga was unchanged at RM12.00.

On Bursa Malaysia Derivatives, KLCI futures closed lower for the fourth consecutive day despite mild gains on the cash market, dealers said.

April 2007 and June 2007 fell 6 points each to settle at 1,282.5 and 1,277 respectively.

September 2007 went down 7 points to 1,272.0 and May 2007 lost 7.5 points to 1,265.5. - Bernama.

The Edge Daily, 13 April 2007 - Dijaya at 6 1/2 year high

The Edge Daily, 13 April 2007

The share price of Dijaya Corporation Bhd surged to a 6 1/2 year high of RM1.49 on April 13 after an InsiderAsia article in theSun that it is an undiscovered property gem.

It rose to a high of RM1.62 in intra-day trading before settling at 13 sen or 12% higher, with 8.84 million shares done. The intra-day low was RM1.40.

InsiderAsia on April 13 said as investors sought out undervalued and laggard property stocks, Dijaya was shaping out to be an undiscovered gem.

"Dijaya may be an under-researched stock, but the company is far from being an unknown property player," it said.
InsiderAsia said Dijaya was synonymous with the development of Tropicana Golf & Country Resort, which pioneered gated luxury living in the Klang Valley.

It said Dijaya's share price had lagged the property and market rally, which was spurred on by the waiver of real property gains tax with effect from April 1.

Its net tangible asset per share was RM2.16 as at end-2006 and InsiderAsia said its estimated revised net asset value (RNAV) was RM3.62.

"Its NTA itself is severely understated due to low land costs. The company's Tropicana landbank is carried at RM7.98 per sq ft compared with current value of RM135-RM145 per sq ft," it said.

Dijaya also has sizeable cash reserves with net cash of RM164.1 million or a significant 63.2 sen per share at end-2006.

The Edge Daily, 13 April 2007 - Dijaya Corp, undiscovered property gem

The Edge Daily, 13 April 2007

The waiver of real property gains tax last month has spurred a strong rally in property stocks. As investors seek out undervalued and laggard property stocks, Dijaya Corp (RM1.24) is shaping out to be an undiscovered gem.

Dijaya may be an under-researched stock, but the company is far from being an unknown property player. It is synonymous with the development of Tropicana Golf & Country Resort, which pioneered gated luxury living in the Klang Valley. Indeed, Dijaya is a case where its projects and products are much better known than the parent company.

Dijaya's shares have lagged the property and market rally, and are very undervalued. At RM1.24, its shares are trading well below its NTA of RM2.16 (as at end-2006) and our estimated RNAV of RM3.62. Its trailing P/E is just 7.9 times.

Its NTA itself is severely understated due to low land costs. The company's Tropicana land bank is carried at RM7.98 per square foot (psf), compared with current values of RM135-145 psf. The Damansara Indah land is carried at RM6.41 psf, compared with current values of RM118-133 psf.

Moreover, Dijaya has sizeable cash reserves - unusual for property players - with net cash of RM164.1 million or a significant 63.2 sen per share at end-2006.

In 2006, Dijaya's net profit rose 39% to RM40.5 million, or 15.6 sen per share. Dividends have been maintained at four sen for the last two years, with a gross yield of 3.2%. We expect earnings to improve in the coming years, given the slew of new projects as well as billings from projects launched over the past year.

Large, prime land bank
Dijaya was listed in 1992. Its flagship 250ha Tropicana Golf and Country Resort is one of the Klang Valley's most exclusive gated residential addresses. Other projects include the adjoining 163.6ha Damansara Indah Resort Homes, Casa Damansara condominiums in SS2, Damansara Intan Business Park and Casa Kiara condominiums in Mont' Kiara.

The company has a large land bank totalling 397.7ha, of which 173.6ha is in the prime Damansara-Tropicana area, 9.8ha in Sungei Besi, 3.2ha in Ipoh, 4.4ha in Penang and 206.8ha in Tanjung Malim, Perak.

RNAV of RM3.62
Dijaya's Klang Valley land bank is of prime quality and is carried at very low costs. It has 137.1ha left in Tropicana (including the golf course), carried at RM119.1 million - or just RM7.98 psf.
Current market values are RM135-145 psf. In Damansara Indah, it has 32.2ha carried at RM22.5 million, or just RM6.41 psf - compared with current prices of RM118-133 psf.

If we revalue the Damansara Indah land to RM80 psf, the revaluation surplus here alone is RM257.7 million or a hefty 99.3 sen per Dijaya share.

It would not be prudent to revalue the entire Tropicana land as the golf course cannot be developed. If we revalue the development portion (estimated around 10%) to RM100 psf, the surplus on around 30 acres is RM120.25 million or 46.3 sen per Dijaya share.

Thus, the revaluation of these two parcels of land alone will add RM1.46 per share to Dijaya's NTA of RM2.16, bringing the implied RNAV to RM3.62 per share.

Current and new projects
Some of Dijaya's current and new projects planned include:

Tropicana: Casa Tropicana Condominiums, semi-detached homes priced from RM1.45 million, bungalow lots priced at RM135-145 psf, and Merchant Square five-storey shop offices. Future plans include Tropicana Grande - a 3.2ha development of 400 units of high-end condominiums with built-up space of 2,500-4,500 sq ft and a 4.8ha commercial project.

Tropicana City: Situated on 3.6ha at the crossroads of the LDP and Sprint highways in SS2, the RM600 million project will be completed in 2009.

Tropicana City comprises 601 Tropics Designer Suites (launched late last year), a four-storey shopping mall with 390,000 sq ft of lettable space anchored by Carrefour and a 12-storey office tower to be sold en bloc. Another apartment block, Casa Damansara 3 will be launched later. In adjoining Damansara Intan, 210 units of "Casa Suites" apartments are under construction.

Damansara Indah: Dijaya launched Casa Indah 2 in March 2006, with 391 units priced from RM248,000. Also on sale are bungalow lots priced at RM118-133 psf, and 86 units of three-storey super-sized semi-detached homes priced from RM1.88 million. Future plans include a 5.6ha commercial development fronting a lake, with 500 serviced apartments.

Hyderabad, India: In Nov 2006, Dijaya ventured overseas and signed a joint venture to develop a 10.2ha, RM650 million residential-cum-commercial project. Risks here are low as the land is supplied by the Indian landowner-partner and Dijaya's investment is just RM40 million.

Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.

NST, 12 April 2007 - Share prices close marginally higher

NST, 12 April 2007 By: BERNAMA

KUALA LUMPUR, THU.: Share prices on Bursa Malaysia closed firmer today as last-minute buying on selected blue chips pushed the key index marginally higher, dealers said.

They added that increased buying activity involving plantation and property counters also helped to offset the earlier losses.

The benchmark Kuala Lumpur Composite Index (KLCI) edged up 0.07 per cent or 0.97 of a point to 1,307.19. It had opened 4.45 points lower at 1,301.77 this morning.

The Second Board Index advanced 0.33 of a point to 102.42 and the Industrial Index climbed 22.64 points to 2,564.71.

However, the Mesdaq Index eased 0.14 of a point to 141.42 and the Finance Index declined 52.38 points to 10,430.9. The FBMEmas gained 9.59 points to 8,752.18 and the FBM30 added 25.48 points to 8,262.62.

Advancers led decliners by 475 to 445 while 274 counters were unchanged, 194 untraded and 44 suspended.

Overall trading was thin with 2.128 billion shares worth RM2.991 billion transacted today, down from yesterday’s 2.301 billion shares worth RM2.903 billion.

“Trading was still volatile with some investors looking to cash in profits following the recent run-up,” one of the dealers said.

“However, expectations that the government will announce new measures tomorrow to boost the property sector attracted new interest among the investors locally,” he said.

Plantation stocks extended their rally, supported by the sharp rise in crude palm oil (CPO) prices while property stocks were steadier ahead of a new property blueprint to be announced by Prime Minister Datuk Seri Abdullah Ahmad Badawi tomorrow.

Among the plantation stocks, IOI Corp climbed 70 sen to RM24.70, Golden Hope rose 35 sen to RM7.70 and Kumpulan Guthrie added 50 sen to RM6.20.

Of the property counters, Dijaya Corporation advanced 18 sen to RM1.33, Bandaraya Development increased 12 sen to RM2.49 and Petaling Garden rose 11 sen to RM1.99.

Among the actives, SapuraCrest-Warrants gained 13.5 sen to 92.5 sen, Jaks Resources added 7.5 sen to 85 sen, Genting-Call Warrants declined two sen to 11.5 sen and Bumiputra-Commerce-Call Warrants went up 3.5 sen to 36.5 sen.

Of the heavyweights, Maybank dropped 20 sen to RM12.30 while Telekom rose 20 sen to RM10.40 and Tenaga gained 10 sen to RM12.00.

Bursa Malaysia went up 40 sen to RM11.70 and MISC climbed five sen to RM9.40.

Volume on the Main Board fell to 1.557 billion shares worth RM2.700 billion compared with yesterday’s closing of 1.794 billion shares worth RM2.661 billion.

However, turnover on the Second Board increased to 213.794 million shares worth RM127.163 million as against 168.682 million shares valued at RM95.389 million previously.

Mesdaq Market’s volume climbed to 161.559 million shares worth RM93.778 million from 139.620 million shares worth RM90.058 million.

Call warrants decreased to 195.599 million shares worth RM69.543 million from 198.762 million shares valued at RM57.176 million.

Direct business deals dropped to 39.905 million shares worth RM73.212 million from 132.139 million shares valued at RM291.856 million.

On a sectoral basis, consumer products accounted for 34.427 million shares traded on the Main Board, industrial products 163.371 million, construction 163.941 million, trade and services 331.076 million, technology 20.181 million, infrastructure 11.978 million, finance 100.863 million, hotels 3.603 million, properties 419.773 million, plantation 65.575 million, mining 300,500, REITS 4.661 million, closed/fund 1.344 million, ETF nil and loans 235.554 million.

NST, 27 January 2007 - Divining a developer’s thoughts

NST, 27 January 2007

To march ahead in the property market this year, one must have his focus firmly cast on the horizon, yet have the peripheral vision to see and respond to changes that might occur in the near term.

With his experience in turning a once quiet area in Petaling Jaya, Selangor, into a highly prized address called Tropicana Golf & Country Resort, we spoke to PK Poh, group managing director of main-board listed Dijaya Corp Bhd on what his plans are for the year and what he’s doing to overcome challenges.

What is your market outlook for the year?
Our country’s Gross Domestic Product growth is projected to be good, at between five and six per cent, about the same as the 5.8 per cent registered last year. Inflation has fallen below four per cent; while the stock market’s KL composite Index (KLCI) is heading towards the 1,300 level.

Interest rates are also holding steady and people generally feel that their rice bowls are secure. These factors, combined with the political stability we enjoy, will make the market firm but “patchy”. By this, I mean properties that are well-located, well-designed and targeted at the right niche will perform.

Interest rates are also holding steady and people generally feel that their rice bowls are secure. These factors, combined with the political stability we enjoy, will make the market firm but “patchy”. By this, I mean properties that are well-located, well-designed and targeted at the right niche will perform.

A case in point is our serviced apartments project (The Tropics) located in Tropicana City in SS2, Petaling Jaya. Within three weeks of launching, sales reached almost 50 per cent – a very creditable result, given the slowdown in sales experienced in other nearby projects.

The direction of the stock market will continue to play a key role.

If second and third liners, which haven’t risen in tandem with the KLCI, catch the bullish fever, it could create a fell-good factor that could result in a mini property boom.

When that happens, the first location to benefit will be the Klang Valley, Penang and Johor. If the trend persists, secondary towns in less populated states will also gain.

Which residential and commercial sub-sectors are expected to shine within these one to two years?
Unsold stock of residential units costing below RM300,000 has yet to be cleared. However, well-designed units developed by reputable developers in good locations, whether landed or strata-titled, and costing between RM300,000 and RM2million, will continue to be in demand.

In the Klang Valley, I see continuing demand for houses in the Tropicana-Kota Damansara precinct and in some of the undeveloped pockets near the SS2 area and along the Sprint Highway.

For established and “hot” areas such as Kuala Lumpur City Centre (KLCC), some property experts are saying a surplus situation might loom.

Mont’ Kiara still attracts a lot of interest but it is almost fully developed, with its boundary spreading to Segambut and to the edge of the Malay reserve zone nearby, while the KLCC market may soon extend across Jalan Tun Razak to the Ampang Hilir area.

For the commercial sector, occupancy has improved. Despite more stock coming on-stream in the next two years, the sector should remain strong. If we can hit our 20 million tourists target for the year, the retail trade will become more buoyant.

It would also be good if efforts to attract more Foreign Direct Investment (FDI) and blue-chip companies to set up their regional headquarters in Malaysia succeed. Also, more blue-chip buildings will be available for injection into Real Estate Investment Trusts (REITs).

Going forward, what are some of the opportunities and challenges developers face?
Property development is not only getting more competitive, but also more difficult due to external factors.

One of the challenges for developers is learning to operate profitably in a more regulated and restrictive environment. In contrast to the global trend of greater liberalisation, new rules and laws are being enacted here due to a handful of errant developers.

The percentage of failed or “sick” projects is less than three per cent, which is normal in any business but because housing issues can be quite sensitive, laws have been passed to protect the people.

These laws not only restrict developers’ operations, but also require them to make compulsory payments and contributions for a multitude of infrastructure and even for social purposes!

This means that development costs will go up. When the price of crude oil went through the roof, building materials such as cement, bitumen, aluminium, copper, steel, and timber rose by between 10 and 30 per cent. Many contractors and developers in mid-construction were affected.

The ability to contain costs in such an environment is another big challenge.

Thirdly, developers have to continually replenish their depleting landbanks. Prices of some plots of unconverted land, in my view, are preposterous. Some landowners want to sell their raw land at prices equivalent to developed land. This is clearly unsustainable!

Even in the best of times, prudent developers have to balance between holding sufficient land to last them for a few years, and yet not end up buying too much or their cash flow will be affected by high holding costs.

I believe prospects exist in certain middle- to high-end niche sectors where developers have provided variants to existing designs.

Link houses have gone from two- to two-and-a-half- and three-storey; semi-dees have taken on the look and size of bungalows; condominiums have become sky villas, and so on.

These are not just marketing stunts, but responses by savvy developers to changing trends.

For these reasons, we have been very successful with our Tropicana Green Acres project. And as more foreigners come to look at our properties, we will introduce more changes to suit different lifestyles.

Interestingly, the rising crime rate has also provided more opportunities for reputable resort developers. Security, or rather the lack of it, has prompted us to pioneer the concept of gated-and-guarded golf resorts such as Tropicana Golf & Country Resort and Damansara Indah. It is very common nowadays to hear of snatch thefts, burglaries and even of car owners being relieved of their luxury vehicles right at their doorstep.

Fortunately, for our residents, we not only provide the ambience and joy of living in a gated-and-guarded resort, but also provide them with peace of mind as we ensure full safety.

Dijaya’s success is rooted in its ability to introduce variants to established designs as is evident here in Villa Green 3A,
featuring 86 units of three-storey super semi-dees

What do you think of the recent relaxation of the Foreign Investment Committee (FIC) guidelines for foreign buyers of local property?
It is a big step in the right direction. In the past, a few developers had lamented the loss of foreign customers due to the guidelines, as approval process was so time-consuming that they were not prepared to wait. They simply couldn’t understand why it is so cumbersome to invest in our properties. We must not forget that other countries are waiting to roll out the red carpet for the very same investors.

There is yet another approval hurdle despite the relaxation of the FIC guidelines. Any land transaction involving foreigners still has to be approved by many relevant authorities under the National Land Code. Hopefully, this issue can be addressed in the near future.

What should be done, at both state and national levels, to optimise the benefits of the new FIC guidelines?
There is a need for more investor-friendly policies, both real and perceived. The government should ensure that there is no flip-flop or U-turn for five to eight years at least. Property investment is a long-term game and an investor’s time horizon is at least five years.

If we only make it easy for foreign buyers to enter but difficult to exit (ie, sell), then they will think twice before coming back to our shores.

For example, in the 1990s when some states lifted monetary levies for foreigners and later re-imposed them, it created so much hullabaloo, especially among Singaporeans. Many of them who had been hit have yet to return.

We have to bear in mind that property is something foreigners can buy but can’t take away with them. If there is a need to control such investors from crowding out the locals, we can establish a reasonable quota, of say 30 per cent per project for foreigners. But rules must stay consistent to engender confidence.

Do you expect to see an influx of foreign investment into the local property market?
Yes, but not immediately. Don’t forget that foreigners still have to contend with navigating the bureaucratic approval process of purchasing property at the local government level.

Even if they overcome this impediment, they will only test the waters by starting out small. Investments will snowball only if they become more confident.

Just as long-term developers are happy their local purchasers have made money, we should similarly allow foreign investors to do so. After all, that is the whole point of investing, isn’t it?

How is your company planning to take advantage of this incentive?
For the past 12 years, we’ve had foreign investors staying in Tropicana because of its uniqueness. We now have 22 nationalities, from Britain, Bosnia, China, Canada, Finland and France, living here. We have been very proactive in helping them to get both FIC and state approvals to try to make their wait less of a chore. With the recent FIC relaxation, we should be able to shorten the waiting period by three to four weeks.

Tropicana, a pioneer of the gated-and-guarded resort living, has a large foreign community residing in it.

What are some of the projects Dijaya is lining up over the next one to two years?
It will be an exciting time for us. We are focusing on the RM110 million Casa Indah 2 condominiums (391 units), the RM165 million Villa Green 3A three-storey super semi-dees (86 units) and a RM500 million lifestyle and lake-front commercial project (1.3 million square feet), all located in our Damansara Indah Resort Homes precinct.

At Tropicana, we will complete phases three and four of the RM368 million Casa Tropicana condos (1,217 units), and begin work on the RM450 million Tropicana Grande, featuring 400 units of super-luxurious sky villas.

In the SS2 area, the RM600 million Tropicana City will be completed in stages – Tropicana Mall in 2008, The Tropics in 2009 and our corporate headquarters, also in 2009.

The Tropics is part of the RM600 million Tropicana City
that will be completed in three stages with the Tropicana Mall in 2008

Overseas, we are looking forward to the take-off of our first project in Hyderabad, India. It has a potential Gross Development Value of RM650 million.

It is going to be challenging, working in a new country and culture, but since we have a good team in place, we hope to get the necessary approvals and commence sales later this year.

It is our long-term plan to establish our brand abroad, and this project in Hyderabad is the first step in that direction. Hopefully, more will follow in the coming Year of the Boar, which promises to be a good year for the property business!

Fast developing Hyderabad City, the capital of India’s fourth largest state Andhra Pradesh,
is also one of the key IT cities in the country.

Dijaya’s 25-acre site in Hyderabad will be a mixed development
with an expected Gross Development Value of RM650 million.

Smart Investor, January 2007 - Dijaya continues to set new trends

Smart Investor, January 2007 - By Cecilia Kok

One of the hallmarks of Main Board-listed Dijaya Corporation Berhad is the passion that is evident in the way the Group carries out its projects. Although being profitable is important, the property developer is equally concerned about delivering good quality buildings and keeping its customers happy.

"For a developer who has passion for his work, undertaking a project is more than just about making money. When you do things with zeal, it will show in your products," declared Dijaya group managing director, P.K. Poh. "So, doing a good job from inception to completion -and providing good management and after-sales services to customers - have become our main focus.

"This is the culture that Poh has been inculcating among the staff of Dijaya. Having set its focus on quality high-end properties in Petaling Jaya since 1991when it developed the 625-acre gated and guarded golf and residential haven, Tropicana Golf & Country Resort, Dijaya has successfully positioned itself as the premier and preferred high-end quality developer, and has won many accolades along the way.

The Tropicana Golf & Country Resort stands as an important landmark in PJ today.

"We want to be known as a premium developer that delivers quality lifestyle homes to contented customers; we want to continue to raise our stature and brand value to an even higher level. At the same time, we have a good record of dealing fairly with all the stakeholders and generating steady profits for our shareholders," Poh said.

Poh: Doing a good job from inception to completion -
and providing good management and after-sales services to customers - have become our main focus

Sweet Success
Dijaya, with 15 years of experience under its belt, has achievements that are very impressive. It struck its first gold mine with its maiden project, the Tropicana Golf & Country Resort.

According to Poh, the idea for a low-density, high-end project with 24-hoursecurity and a 27-hole golf course, was the brain child of the group chief executive officer and controlling shareholder, Tan Sri Dato' Danny Tan.

Back then, the concept of such a resort was something new. Most developers at that time were concentrating on high-density linked houses and apartments to maximise their profits. "Initially, there was a lot of apprehension about our project and we did encounter difficulty selling the concept to prospective buyers. However, slowly but surely, we won over their trust as they saw how the project was taking shape," Poh recalled.

Bucking the market trend bore fantastic results for Dijaya. Tropicana Golf &Country Resort stands as an important landmark in Petaling Jaya today, and every other project in the vicinity uses Tropicana as the benchmark and reference point.

Three years later, Dijaya introduced yet another gated and guarded golf resort, in collaboration with Perbadanan Kemajuan Negeri Selangor (PKNS). Located adjacent to Tropicana Golf & Country Resort, the 407-acre Damansara Indah Resort Homes project comes with an 18-hole golf course.

Again, by introducing new concepts to the market, Dijaya's lifestyle, low-density properties captured market interest. Not only that, Dijaya's pioneering and leading efforts sparked a new trend in gated and guarded resort developments in urban areas, as other developers followed suit, from Kuala Lumpur to Klang and beyond.

"Realising that this niche lifestyle sector could generate favourable returns and elevate a company's image and branding to a new level, other developers jumped onto the bandwagon and began to rollout projects bearing concepts that we had first introduced," Poh noted.

"Undeniably, some of the gated resort communities developed by our competitors have been well planned. But the true ambience and 'spirit' of a resort can only be captured if you are in the right location, and have a beautiful and well-maintained golf course around the development, like what we have in Tropicana and Damansara Indah," he added.

A breathtaking dusk view of Tropicana's East golf course

In fact, Tropicana Golf & Country Resort is a multi-award-winning project. It bagged the "Leisure Development Award" from the International Real Estate Federation (FIABCI) in 1995, "Selangor State Government's Best Landscape Award" in the hotel/ tourism complex/condominiums/luxury apartments category in 1997, and "Best Clubhouse/ Facilities in Malaysia" by Golf Malaysia's Reader's Poll for four consecutive years from 2002 to2006. It was also named top two in the "Best Customer Service Club" and top eight "Golf Course in Malaysia" by Golf Malaysia's Readers' Poll from 2005 to 2006.

"There is no greater satisfaction than being given the 'thumbs up' year after year by your customers," Poh admitted with a smile.

Unique Selling Points
Living up to its tag as a trendsetter, Dijaya continues to introduce new ideas and concepts to its projects to meet the changing needs of homebuyers, whose expectations have become more discerning and sophisticated.

With more than 30 years of experience in the property development sector, discerning what designs would be relevant and appealing comes easily for Poh, a BSc (Building) graduate from the University of Singapore. He travels regularly to other countries and he would invariably visit landmark buildings there and draw inspiration for the designs of his projects, even while on holiday.

"Whenever I hear or read about some interesting concept or project, I will try to go with my team to look at it. We are continually looking for new ideas and inspiration from what we read, and from the places we visit. For example, part of the design concept of Dijaya's up-and-coming Tropicana City was inspired by the world's tallest building - Taipei 101 - while I was in Taipei on a business trip," Poh revealed.

The signature entrance portal of Tropicana Mall is an iconic golden masterpiece by night

"That said, we do not just copy what other people do. We draw ideas from them, and try to improve on what we perceive to be lacking in their designs," he added. "Sometimes, I also play the devil's advocate and grill my friends and business associates for ideas. Because of this habit, ideas can sometimes be hatched even before we plan a product."

According to Poh, coming up with anew concept can be a real challenge at times, but thanks to a strong project team, the brainstorming process does not take very long to produce results most of the time. The team continues to innovate, refine and add value to Dijaya's products so that it stays ahead of the competition.

For example, he incorporated electronic technology or "smart-home" features as a standard provision for its homes; chic and trendy features such as large en-suite bathrooms with rain showers and skylights for some of its projects; shower rooms with a golf-course view for high-rise apartments in its resorts; as well as other practical features such as a handicap-friendly room for the elderly.

"My policy is quite simple - introduce at least one unique selling point in every design to give our prospective buyers something to remember and tell their friends and relatives about.

Chic designer loft with a commanding view of PJ & KL skyline from Tropics Designer Suites

"Take Tropicana and Damansara Indah, for example. Even from a macro level, I ensure that no matter how busy or noisy the road is outside these resorts, once residents drive into them, they will immediately see the difference in scenery, feel the tranquillity and even smell the change in air quality," Poh said.

The unique selling point need not always be something major, though. "It could be just part of the kitchen or the bathroom, like what we have introduced to great effect in our three-storey semi-detached villas in Damansara Indah," he explained. Though simple, they certainly are talking points.

These factors aside, the key concern of a developer is always the purchaser's confidence and his perception of the future direction of the market. By that, I am referring to our potential customers' state of mind and how optimistic they are about the future. As long as the 'feel good' factor and trust are there, people will continue to invest in good properties," Poh said.

Quality Assurance
While every effort is given by Dijaya to ensure the quality of its buildings, purchasers need to realise one thing - a house is not made in factories, even though the components are.

"It is put together by human hands, and anything that is made by hand will not be perfect - not every wall will be perfectly straight, and not every floor will be perfectly level. That is why our responsibility does not stop upon completion of a building. While it is not possible to keep every purchaser happy, if any defect is found in our buildings due to bad construction, we will try to rectify it one way or the other," said Poh.

Dijaya's prompt responses to its homebuyers' complaints as well as its genuine care and concern for them have resulted in many satisfied customers. "We make every effort to ensure that we deliver what we promise to our buyers, because a home is the single most expensive investment for most people," Poh reasoned.

A project that has all the right attributes in terms of location, quality, features and management can easily appreciate in value within the short term. Creating a product that can generate good investment returns to its buyer is one of Dijaya's main business principles. Hence, products that offer excellent location, quality, innovation and modern conceptual living have become the company's hallmarks.

That is why the price of each Dijaya home is structured in such a way that it will always leave room for purchasers to make money. "We believe that this is another way we can maintain a strong following of purchasers who will repeatedly invest in each of our projects, or at least encourage their friends and relatives to do so," Poh explained.

He cited an example of a man who bought a unit in Dijaya's Casa Damansara condominium project in SS2. The customer then recommended six of his relatives to the project who subsequently bought one unit each. "We also receive' standing instructions' from some residents

in Tropicana to book one or more units for them in every project that we launch, even before they visit our show unit." Poh said.

"Our numerous purchasers at Tropicana have seen their investments multiply manifold. Even foreigners found our properties to be a great investment," he added. "There are currently 22 foreign nationalities residing there, making it a miniature United Nations of sorts."

More recently, bungalow lots in Tropicana have appreciated by as much as 500% from RM30 psf at its launch to RM150 psf to date. Dijaya's Casa Indah 1 condominiums that have just been handed over to its purchasers have appreciated by 30%.

The style and serenity of the Casa Indah condominium are best captured by this night scene

Commercial Focus
While its core vision of delivering quality residential homes in niche markets remains unchanged, Dijaya is expanding further into the commercial property sector, following the success of its Damansara Intan e-Business Park. It currently has a balance of 12 acres of commercial land in Tropicana and 14 acres in Damansara Indah, where it is planning to build lifestyle commercial projects.

"Like our residential properties, we will also bring innovation into these commercial properties. In Damansara Indah, we are improving on the normal shop-office concept and one of the things we will be introducing is a wide and pleasant pedestrian mall, and ample basement car parks. This is something we find lacking in the popular, 'happening' spots of Bangsar and Desa Hartamas, where navigating through traffic is a hazard and finding a parking space is a nightmare.

"Our proposed shop-offices will also have trendy contemporary designs, and will be complemented by residents living in chic lofts and serviced apartments by a lake, overlooking the Seri Selangor golf course, which, by the way, was designed and built by us." Poh explained.

"We are looking at a steady flow of rental income from our commercial developments to complement our sales revenue," he added.

The company is already making waves with its RM600mil commercial masterpiece known as Tropicana City, comprising Tropicana Mall; 601 units of The Tropics designer suites and apartments; and a modern 12-storey office block slated to become Dijaya's new corporate headquarters. Incorporating the "live, work and dine" concept, the 3-in-1project is located strategically at the Sprint and LDP junction, with superb exposure to 200,000 passing vehicles per day.

Scheduled to open in 2008, Tropicana Mall is set to become PJ's premier neighbourhood mall. The entire mall, anchored by French hypermarket giant, Carrefour, will be leased out to give a steady long-term rental income to the company.

Overseas Venture
With land becoming scarce locally, Dijaya has set its sights on other countries in Asia, including Myanmar, Vietnam, the Philippines and China. Local land owners are also quoting exorbitant prices that leave little room for the developer to make money from the development.

"We are expanding our expertise overseas not only because of the shortage of 'strategic' land locally, but also because there are more and more regulations and red-tape being imposed on developers here. Due to a minority of developers who have not done their jobs properly, the authorities are enacting more and more laws. Nowadays, it becomes more and more difficult for us genuine, long-term developers to get a project off the ground. The lengthy and cumbersome process of doing so will increase our costs quite substantially," Poh explained.

"However, we find that with our branding, we can get very good reception from potential joint-venture partners overseas. We have hosted visits from various Chinese, Vietnamese and Indian parties who came to view our projects, and they have all been very impressed by our achievements. In fact, they want us to replicate our concepts in their country," he said.

Dijaya recently sealed a RM650mil joint-venture deal with a landowner to develop a residential-cum-commercial project in Hyderabad, India.

"India is some years behind us in the property development business, so we feel that the country holds a lot of promise. We can bring value to the table as we can provide the concept, technology, construction, marketing and management expertise to them. Of course, we have to be aware of the intricacies of the environment there, including their cost structures and cultural differences," Poh said.

'Heartware' Emphasis
According to Poh, a good company will always be able to not only attract, but also retain, good people.

"I am now near my retirement age, after having been in my chosen field for almost 30 years, half of which is with Dijaya," Poh quipped. "Through it all, I have been in various companies, seen many people come and go, and met all kinds of bosses and employees".

And what attributes does Poh find to be most important in a boss or employee?

"Heartware," Poh said without hesitation. "Yes, you can find and hire capable people, as there are many people out there with the necessary 'software', that is, people whose skills fit the job description. But they maybe there just to make a living, and have no loyalty, passion or commitment. On the other hand, people with 'heartware' are a rare breed. By this, I mean the relatively few talented and committed people who not only can make things happen but also help to achieve the company's vision. Their hearts are also in their work and they have no time for office politics or to get involved in back-stabbing their peers or superiors. They do their job with the zeal of a missionary, disdain mediocrity and always put the interests of the company first".

"Cream will always rise to the top, and therefore, such people will always do well. They just need to be in the right company, where they will be worth their weight in gold," Poh concluded.