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Friday, June 10, 2011

Dijaya soars to near 5-month high on land deal

KUALA LUMPUR: Dijaya Corp Bhd's share price almost hit a five-month high yesterday after the company's announcement of a big land buy on Wednesday, but analysts were not convinced it could win over more investors despite plans for a RM2.5 billion mixed development project.

Dijaya has not been on investors' radar partly because it is a tightly-held company, namely by group chief executive officer Tan Sri Datuk Danny Tan Chee Sing.

Tan, brother to Berjaya Corp Bhd's chairman, Tan Sri Vincent Tan Chee Yioun, is Dijaya's substantial shareholder holding a 30.78 per cent stake.

He also holds another 36.44 per cent stake in the company via Impeccable Ace Sdn Bhd and Golden Diversity Sdn Bhd.

Analysts have lamented that the stock's low liquidity and trading volume, less than 80,000 in the last one year, hinders investors' interest.

"Although the latest land deal would raise some eyebrows but it's not considered 'sexy' when compared to Dijaya's plan to build a RM750 million hotel-cum-residential block on where the historical Bok House used to sit in Jalan Ampang," said an analyst.

Dijaya signed a collaboration agreement with hotel and leisure group Starwood Hotels & Resorts Worldwide Inc to develop the six- star hotel called W Hotel last April.

Dijaya, known for its flagship Tropicana Golf & Country Resort and Tropicana Indah Resort Homes development in the Klang Valley, said it would continue to look for investment opportunities to expand its landbank.

On Wednesday, the developer bought RM391.1 million worth of land in Subang, Selangor, and Kampar, Perak, pushing its stock to close at RM1.2 yesterday, its highest closing price since January 17 2011.

Year-to-date, the closing price was a significant 16.5 per cent jump or a 17-sen rise, the second highest increase among property stocks.

By Business Times

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