Nanyang Siang Pau, 20 September 2011 - Dijaya Corporation Corp 2HFY11 Result Maintains

Nanyang Siang Pau, 20 September 2011

Analyst: OSK Retail Research
Neutral
Target: RM1.64

Latest Development
Dijaya Corp Bhd (Dijacor, 5401, property development group) property investment group launches more than RM17 billion worth of projects, which involves a total of 707 acres of land bank.

DIJAYA is set to move to the southern development corridor in Johor, via the recent aggressive acquisition of land bank in Danga Bay and Plentong in Johor Baru. These two projects, which involves collaboration with Iskandar Waterfront Sdn Bhd plans to have a collective GDV of RM6.5 billion over 10 years.

Analyst Report
Dijaya Corp acquired property in strategically located prime areas in Klang Valley at a very low entry cost. One example is the 1,000 ha land bank at Tropicana Indah Resort Homes, which they bought many years ago at RM5 – RM10 per square feet. According to the recent market valuation, it is now worth RM300 per square feet.

Although the company’s revenue for the first half of the year improved by a margin of 0.2%, net profit jumped nearly six fold. Stripping out the non-core contributions, the bottom line surged to 35.9%. We expect the company’s second half of year 2011’s (2HFY11) core earnings to mirror the performance of the first half year of 2011 (1HFY11).

What is to be taken note of is that Dijaya is in the midst of completing a private placement of new ordinary shares representing 30% of its issued and paid-up capital. As a result, there will be a short-term earnings dilution, which we have not factored into our forecasts.

19/09/2011 PERFORMANCE

Closing Price: RM1.42
Up/Down: -2 sen
Highest: RM1.43
Lowest: RM1.38
Volume exchanged: 394,900 shares
52 week High: RM1.71
52 week Low: RM0.90