Nanyang Siang Pau, 11 October 2011 - It is not difficult for Dijaya to gain land acquisition financing

Nanyang Siang Pau, 11 October 2011

Target price: RM1.33

Latest progress
DIJACOR Institution (DIJACOR, 5401, Main Board Industry Unit) spends RM65 million on the acquisition of three pieces of permanent land in Sultan Ismail Road, Kuala Lumpur, through ACE Rhythm Private Limited Company – a subsidiary company of Dijaya Corporation Berhad with 99.9% equity.

The above-mentioned land will be used for the construction of service apartments and commercial shops (the project is called Tropicana Sultan Ismail), the total value of which adds up to RM650 million.

Inventory analysis
With regards to the limited space in Kuala Lumpur Golden Triangle and the dense population, it is expected that the above-mentioned projects will gain higher profits and inspiring positive reaction.

The company plans to finance the above-mentioned projects through internal financing and/or bank loaning. Although several large projects in Johor and Selangor are developed by the company, net debt ratio is 0.1 times according to latest quarterly performance and we believe the financing can be kept under control.

In addition, the government has increased the RPGT in 2012 budget bill, which will not bring notable impact to the company since the properties developed by the company are mainly high grade and all the purchasers are high-income group with strong holding capacity.

DIJACOR Institution Share Price Movement

10/10/2011 Market Quotations

Closing price: 1.29 Riggit
Fluctuation:-1 Sen
Highest: 1.30 Riggit
Lowest: 1.27 Riggit
Turnover: 262.3 thousand shares
Highest of 52 weeks: 1.71 Riggit
Lowest of 52 weeks: 90.5 Sen