DIJACOR (Article 2)

Listed since 1992, DIJACOR is a Klang Valley based property developer. Corporate tycoon Tan Sri Danny Tan Chee Sing is the main shareholder in the company. Management lies in the capable hands of managing director Tong Kien Onn and his team. Base on Chart 2, DIJACOR net profit quite consistent between RM30 million to RM50 million for the last 5 years. Meanwhile, it’s net asset per share increase steadily to RM 2.39 as at end of 2008. The land it owns in Tropicana and Damansara Indah are stated below current market value in its books value as reported by TheEdge analysis report on Dec 2007. If based on the current market values, the estimated DIJACOR’s RNAV at about RM4 per share – almost three times the current share price.

As at end of 2008, DIJACOR has unbilled sales of RM283 million and at end-September 2008, net cash and equivalents stood at RM26.6 million. Not many property developers have net cash on hand. Further more, between December 2007 and February 2008, the company acquired a total of 186.2 acres of
mainly agriculture land, but within or nearby established areas. The acquisitions include 26.4ha in Kajang,Selangor, for RM47.5 million (RM16.50 psf);
37.4ha in Jenjarom, near Klang for RM29.5million (RM7.25 psf) and 10.7ha. in Cheras for RM18.7 million (RM16 psf). With this, DIJACOR would have a total land bank of around 386.8ha.

There are 2 main projects which may be launched from mid-2009 to mid-2010, namely Tropicana Grande and Tropicana Avenue. Tropicana Grande was to consist of 241 units condominiums with large built-up space of 2,500-4,500 sq ft, located on 2.1ha. land. Tropicana Avenue was to comprise three blocks of nine- and 11-storey shop offices on 2.8ha. land. In the meantime, the company is busy completing its existing projects in Tropicana City and Tropicana Indah, as well as the shops in TSB Sungai Buloh. DIJACOR will also focus on selling the balance of its projects and inventory, such as those in completed projects like Casa Suites, Tropics Designer Suites and Villa Green.

Tropicana City Mall opened in December 2008 and the office tower will be
completed in mid-2009. This will provide a new source of recurring income
from 2009 onwards, with rental income of over RM20 million from the mall and
RM5 million from the tower.

Besides, DIJACOR also has an Indian joint-venture project which has no been finalize yet. However, the company has proposed three-for-four rights issue but has been delayed until Sept. 2009. Anyway, it is believe that the right issue will be eventually called off given weak market conditions and its strong balance sheet.

DIJACOR's shares are trading well below it’s book value of RM2.39 as at end of 2008, which is already severely understated. DIJACOR's shares are attractive for
longer-term investors. The company has a strong balance sheet, large prime
land bank acquired at low costs and the ability to ride through the downturn relatively well.



Note: Most of the contents of this article are refer to analysis reports from TheEdge.


ATTN: THIS DISSCUSION IS PROVIDED FOR GENERAL INFORMATION ONLY, IS NOT TO BE CONSIDERED AS INVESTMENT ADVICE AND SHOULD NOT BE RELIED UPON FOR INVESTMENT DECISIONS. NO REPRESENTATION OR WARRANTY IS MADE REGARDING THE ACCURACY, RELIABILITY OR TIMELINESS OF THE CONTENT. VISITORS SHOULD VERIFY INFORMATION WITH OTHER RELIABLE SOURCES.

Simulation Model Portfolio 2

Base on the current market price, total return for the simulation model portfolio is RM15300, in a period of less than 2 months. In the past 2 weeks, local market follow regional market rebound strongly and break the KLCI 1070 point settle at 1075.5 as of 5 June 2009. This is a very encouraging sign amid the recovering of the global economy. But, still I will say is better to stay cautious optimistic as the rebound seems very fast, a bit too fast.

DIJACOR - Introduction

The simulation model portfolio comprise of the following sector:

DIJACOR - Property
MASTEEL - Industry Product - Steel
HARTA - Industry Product - Glove
RESORT - Trading & Services – Entertainment & Gambling
ANALABS -Trading & Services – Waste Management & Agriculture
CEPAT - Plantation – Oil Palm
IPOWER - Mesdaq - Technology

I will go through the portfolio stock one by one. Today’s and the following articles will be focus on DIJACOR.

Brief Introduction DIJACOR

DIJACOR mainly involved in real property and resort segment which is engaged in the development of residential and commercial properties, and provision of development golfing and other sporting and recreational facilities. The Company operates the Tropicana 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. End of last year, the Company has started operating Tropicana Mall, a shopping complex with 390,000 sq ft lettable area.

Historical Share Price

Refer to Chart 1. Share price of the Company since year 2003 until 21 May 2009.

Recent Quarter Financial Result

Financial for Quarter 1 2009 shown an increase of about 187% compare to last year same quarter. Net profit for the quarter is RM9.567 million (not been audited) compare to RM3.326 million same quarter last year.




ATTN: THIS DISSCUSION IS PROVIDED FOR GENERAL INFORMATION ONLY, IS NOT TO BE CONSIDERED AS INVESTMENT ADVICE AND SHOULD NOT BE RELIED UPON FOR INVESTMENT DECISIONS. NO REPRESENTATION OR WARRANTY IS MADE REGARDING THE ACCURACY, RELIABILITY OR TIMELINESS OF THE CONTENT. VISITORS SHOULD VERIFY INFORMATION WITH OTHER RELIABLE SOURCES.

Simulation Model Portfolio 1

I believe every one have thought of investment either in property or equity. Both investment types got their own risk and advantage. For me, I prefer equity, for a simple reason, I can cash out any time. Anyway, I will emphasize that there are different ways to invest in equity market, either speculation or investment. Both make profit base on price different, the latter need more time, the former need less time probably, but with high risk.

I personally will suggest those who want to invest make some study, put some effort before jump in! I will suggest study about the whole market condition, then from there decide which sector will grow under the current market condition. Follow by choosing the best share from the same sector. Make comparison and narrow down the risk. Then only start to invest. But bear in mind, I strongly suggest to do investment rather than make speculation to make short time profit. Investment mean you really want to put your money into the business because you believe that the company can bring value, profit for you after some time, probably in 5 to 10 years time. Also mean, you really have extra money which you will not need it for the next 5 to 10 years. Let the money make money for you.

As a beginner, I do worry that I will lose money, same as everyone else, because we lack of experiences. So, I have decided to make a simulation model portfolio. Meaning that I buy those share I chosen ‘on paper’, assume that I have bought it, so if I make mistake, I still not lose my money. Also this will test how big the risk I can bear, imaging if the share you bought drop 50%, how you feel?

I have created my own simulation model portfolio and will update it from time to time. Also, I will explain why I choose those shares one by one then. All those shares that I picked I have followed for sometime. I have made the portfolio on 3 April 2009, which I believe the economy may see bottom soon. And now, I decided to share with you. For just 1 month plus, I made almost RM 10,000 of profit, even though is ‘on paper’. But it also mean one thing, buy the right share at the right time will double the chances of success!

Malaysia Deficit, How Much?

How is the Second Stimulus Package affect Malaysia deficit? Take a look at global financial injection to their country versus GDP value and how is Malaysia's govermnet debt to GDP as suggested by Kenanga Research. The charts are for personnal reference only.

How Low Will KLCI Go?

How low will KLCI go for this year? Will Malaysia go into recession with -5% GDP in the worst case? We may not go as low as KLCI 300 point like in the 1998 economy crisis, but if this is the worst economy crisis since post world war II, why we are not go that low or beyond? With export slump further, IPI drop further, what we can anticipate in the next 3 to 6 months? Can anyone give some opinion?

Introduction

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