NewsBites, 11 April 2011 - Dijaya Corporation Bhd closes at 3.8% above VWP but at 7.3% discount to 52-week high

NewsBites, 11 April 2011

Dijaya Corporation Bhd (5401.KL), Malaysia's 23rd largest property company by market capitalisation, decreased 2.0 sen (or 1.7%) to close at MYR1.15 . The price is at a premium of 3.8% to the 1-month volume weighted average price of MYR1.108 . Given that this premium

has exceeded 3.8% forty-five times and been under 3.8% thirty-five times in the last year, the upside:downside probability is estimated at 45:35 or 1.3:1. Compared with the FTSE Bursa Malaysia 100 Index, which fell 96.0 points (or 0.9%) on the day, this was a relative price

change of -0.8%.

Price Change %

1-day

1-month

1-year

5401

-1.7%

10.6%

13.9%

Property

-1.6%

6.7%

36.4%

FTSE Bursa Malaysia 100 Index

-0.9%

3.5%

17.5%

PRICE VOLUME DYNAMICS

Volatility: the stock traded between an intraday low of MYR1.15 and a high of MYR1.17 , suggesting a trading opportunity between peaks and troughs. The average daily volatility of 2.8% places the stock in the 2nd quartile in the market meaning it is moderately volatile.

Volume: there were 40 shares worth MYR46.0 (US$15.272) traded. The volume was 0.001 times average trading of 63,181 shares.

% Discount to high: the last price is at a discount of 7.3% to the 12-month high of MYR1.24 three months ago on 11 Jan, 2011 .

% Premium to low: the last price is at a premium of 47.4% to the 12-month low of 78.0 sen ten months ago on 25 Jun, 2010 .

Rises to Falls: In the last three months the number of rises outnumbered falls 21:20 or 1.05:1.

Standard Deviation (SD): SD is a statistical measure of deviation from the mean. The SD of 1.7% gives it a percentile rank of 24 meaning that 24% of stocks in the Malaysian market are less volatile than this stock.

Access comprehensive Stock Research on 5401

PRICE PERFORMANCE RANK IN SECTORS

The stock is in 2 sectors.

The following index and sectors fell setting the trend for its fall of 1.7%:

Property sector of 71 stocks traded today, which was down 202.0 points or 1.6% to 12,415.0,

FTSE Bursa Malaysia 100 Index which was down 96.0 points or 0.9% to 10,343.9,

The Total Malaysian Market of 778 stocks traded today, which was down 82.8 points or 0.9% to 9,037.2

Percentile Rank

1-day

1-month

6-months

5401

41

80

63

Property

41

70

70

FTSE Bursa Malaysia 100 Index

52

51

49

RELATIVE VALUATION INDICATORS [RVI] FUNDAMENTAL ANALYSIS

Bullish Signals:

- Price/Earnings of 8.8 versus sector average of 17.0 and market average of 15.4.

- The earnings yield of 11.36% is 2.8 times the 10-year bond yield of 4.1%.

- Price/Sales of 1.45 versus sector average of 2.8 and market average of 1.4.

- The Price to Book of 0.6 lower than average of 1.1 for the Property sector and 1.4 for the Total Malaysian Market.

- Return on Equity of 6.5% versus sector average of 6.4% and market average of 8.4%.

- Price/Earnings/Growth of 0.2 (based on the year-on-year growth in trailing 12 months EPS of 46.2%) versus sector average of 0.4 and market average of 0.4.

- Return on Assets of 4.2% versus sector average of 3.7% and market average of 2.8%.

- The P/E of 8.8 multiplied by the P/NTA of 0.6 is 5.1. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

- Interest cover defined by EBIT/I is 8.5 times. This indicates it is less leveraged.

Bearish Signals:

- Total Liabilities/ EBITDA of 6.0 is more than or equal to 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.

RELATIVE VALUATION INDICATORS [RVI] TECHNICAL ANALYSIS

Bullish Signals:

- The price gained 3.6% in the last week and soared 10.6% in the last month.

- Compared with the FTSE Bursa Malaysia 100 Index which rose 3.5% for the month, this represented a relative price increase of 7.1% for the month.

- The price to 50-day EMAP ratio is 1.05, a bullish indicator. In the past 50 days this ratio has exceeded 1.05 four times suggesting further upside. The 50-day EMAP has increased to MYR1.094 . An increase is another bullish indicator.

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) minus the 26-day EMA is positive suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.

- In the last three months the stock has hit a new 52-week high once.

- The price to 200-day MAP ratio is 1.08, a bullish indicator. In the past 200 days this ratio has exceeded 1.08 17 times suggesting further upside. The stock is trading above both its MAPs and the 50-day MAP of MYR1.095 is higher than the 200-day MAP of MYR1.066 ,

another bullish indicator.

Bearish Signals:

- In the Malaysian market of 778 stocks traded today, the stock has a 6-month relative strength of 63 which means it has outperformed 63% of the market.

- The Relative Strength Index (RSI) of 84.6 has penetrated the overbought line of 70; the Stochastic indicator of 81.0 has broken through the overbought line of 80.

SHAREHOLDER RETURNS

Trailing one week: the stock was unchanged twice (40% of the time), rose twice (40% of the time) and fell once (20% of the time). The volume was 0.01 times average trading of 315,905 shares. The value of MYR1,000 invested a week ago is MYR1,036 [vs MYR993 for the

FTSE Bursa Malaysia 100 Index], for a capital gain of MYR36 (or rise of 3.6%).

Trailing one month: the stock was unchanged eleven times (52% of the time), rose nine times (43% of the time) and fell once (5% of the time). The volume was 0.01 times average trading of 1,389,982 shares. The value of MYR1,000 invested a month ago

is MYR1,106 [vsMYR1,036 for the FTSE Bursa Malaysia 100 Index], for a capital gain of MYR106 (or rise of 10.6%).

Trailing one year: the value of MYR1,000 invested one year ago is MYR1,139 [vs MYR1,191 for the FTSE Bursa Malaysia 100 Index], for a capital gain of MYR139 . The total return to shareholders for 1 year is 13.9%.

PVMYR1000

1-month

1-year

5401

MYR1,106

MYR1,139

Property

MYR1,067

MYR1,373

FTSE Bursa Malaysia 100 Index

MYR1,036

MYR1,191

FINANCIALS

Annual Report for the year ended December 31, 2009 (year-on-year comparisons with previous corresponding period)-

Favourable Changes: total revenue up 38.86% to MYR361.1m ( $US105.2m ); net profit growth 16.4% to MYR59.5m ( $US17.3m ); EPS growth 46.15% to 19.0 Malaysian Sen (US5.53c); total debt to net tangible assets down from 20.0% to 16.6%; total liabilities to EBITDA

down 12.23% to 6.0. While this compares unfavourably with the Joseph Piotroski benchmark of <5, the trend is favourable; debt to equity down 17.0% to 0.2; total liabilities to total assets down 17.13% to 0.4; current ratio up 39.26% to 2.5; Working capital to total assets up

47.07% to 26.9%; total revenue to total assets up 23.56% to 0.3.

Unfavourable Changes: interest cover down 54.65% to 8.5; EBIT Margin down 21.03% to 26.2%; total liabilities to operating cash flow ratio of 12.3 also compares unfavourably with the Joseph Piotroski benchmark of <4, it had deteriorated by 19.87% from the previous year.;

Net tangible assets per share down 27.13% to MYR2.0 (US58.1c); total number of shares outstanding up 75.0% to 454,345,000; EBIT to total assets down 10.25% to 5.7%.

Major Common Size Ratios: total non-current assets to total assets down from 56.97% to 54.85%; total current assets to total assets up from 41.86% to 45.15%; cash to total assets up from 11.18% to 21.06%; fixed assets to total assets up from 10.15% to 10.6%; current

debtors to total assets up from 5.72% to 6.86%; cost of goods sold to sales up from 38.06% to 53.78%; EBITDA to Sales down from 31.2% to 23.84%; EBIT to Sales down from 31.15% to 22.62%; profit before tax to sales down from 29.49% to 19.97%; profit after tax to sales

down from 19.65% to 16.47%.

MARKET SHARE

Dijaya Corporation Bhd vs Property sector [Property sector Total in Brackets]

Revenue of MYR361.1 million ( US$119.9 million )[3.4% of aggregate sector revenue of MYR10.7 billion ; up from 2.5% in the previous year.]

Net Profit of MYR59.5 million ( US$19.7 million ) [1.8% of aggregate sector net profit of MYR3.3 billion ; down from 2.2% in the previous year.]

EBIT of MYR81.7 million ( US$27.1 million ) [1.3% of aggregate sector EBIT of MYR6.2 billion ; down from 1.8% in the previous year.]

FUNDAMENTALS

Valuation

5401

Property

P/E

8.8x

17.0x

P/E/G

0.2x

0.4x

P/S

1.4x

2.8x

Size

5401

Rank in Property

MCAP (MYR)

523.2 million

23

Assets (MYR)

1.4 billion

14

Performance

5401

Property

ROA

4.2%

3.7%

ROE

6.5%

6.4%

ISSUED CAPITAL

Based on 455,000,000 issued equity shares the market capitalisation is MYR523.2 million ( US$173.7 million ).

ACTIVITIES

Dijaya Corporation Berhad is a Malaysian company engaged in investment holding and property management. The Company operates through three business segments. The real property and resort segment is engaged in the development of residential and commercial

properties, and provision of development golfing and other sporting and recreational facilities. The engineering and trading segment is involved in mechanical and structural fabrication. The Investment holding segment includes investment income. The Company operates

theTropicana Golf & Country Resort (Tropicana), a 27-hole golf course. Tropicana has a 350,000 square feet clubhouse with a range of sporting, dining and leisure facilities.

TOP MANAGEMENT

The chief executive officer is Chee Sing Tan and DIjaya Managing Director

BUSINESS NEWS ROUND UP

The last 5 company announcements are:

April 06 : Dijaya: Announcement

[News Story]Attached herewith is a press release dated 6 April 2011 entitled: W Hotels set to debut in Malaysia with the signing of W Kuala Lumpur with Dijaya Corporation Berhad .

http://announcements.bursamalaysia.com/EDMS%5Cedmsweb.nsf/LsvAllByID/FE7E4F870EF364344825786A001A2DA1OpenDocument Source: Bursa Malaysia

March 30 : Dijaya Corporation Bhd appoints Non Executive Director

Dijaya Corporation Bhd has appointed Dato' Ng Tian Sang as a Non Executive Director. The effective date is March 29, 2011 .

March 01 : Dijaya Corporation Bhd appoints Executive Director

Dijaya Corporation Bhd has appointed Kong Woon Jun as Executive Director. The effective date is March 01, 2011 .

February 21 : Dijaya: Financial Results

[News Story] http://announcements.bursamalaysia.com/EDMS%5Cedmsweb.nsf/LsvAllByID/91D77235887DEED84825783E0019DAB0OpenDocument Source: Bursa Malaysia

January 03 : Dijaya Corporation : Change in Boardroom

Date of change:31/12/2010Type of change:ResignationDesignation:Non-Executive DirectorDirectorate:Non Independent & Non ExecutiveName:Quek Cham HongAge:49Nationality:Malaysian

http://announcements.bursamalaysia.com/EDMS%5Cedmsweb.nsf/LsvAllByID/5BE77EFC684C207D4825780D00187C87OpenDocument Source: Bursa Malaysia

Currency Conversion: Malaysian ringgit MYR1 = US$0.332 [or US$1 = MYR3.01 ]; Against the US$ the MYR was unchanged for the day; rose 0.5% for the week; increased 1.4% for the month; added 5.7% in the past year. MYR1 = 100sen.