Nanyang Siang Pau, 20 September 2011 - Dijaya Corporation Corp 2HFY11 Result Maintains
Nanyang Siang Pau, 20 September 2011
|Analyst: OSK Retail Research
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.
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.
Closing Price: RM1.42