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Malaysia stock market and companies daily report (February 10, 2012)

Contributed by Shares Investment

Dijaya To Launch RM1.1b Worth Of Projects, Targets Up To RM700m In Property Sales
Property developer Dijaya Corporation is targeting to launch properties this year worth a total gross development value (GDV) of RM1.1 billion, with potential sales of up to RM700 million. In 2011, it developed properties worth a total GDV of RM700 million and sold approximately RM420 million worth of properties. “Dijaya will be launching many new projects this year and next year on lands that we have purchased over the last one-and-a-half years,” said Dijaya’s managing director Datuk Tong Kien Onn. The total GDV of the purchased lands is estimated to be RM28 billion. “For 2012 and 2013, there will be quite a number of launches, especially in Johor, Subang Jaya and Penang,” Tong added. The company is also expected to launch its maiden project in Penang this year through a joint venture with Ivory Properties Group.
Significance: Dijaya’s undeveloped landbank area is substantial at approximately 324 hectare, which can be translated to stable profits in the years ahead. Its joint venture project in Penang underscores the possibility of more collaboration ahead in previously unexplored states in Malaysia.

Hua Yang Expects To Spend RM100m In Landbank Expansion
Property developer Hua Yang (HY) is setting aside RM100 million to expand its landbank for its financial year ending 31 March 2013. The projects developed on these lands will have GDV of between RM800 million and RM1 billion. HY’s chief executive officer Ho Wen Yan said the company had spent RM56 million last year to expand its landbank as deals are difficult to complete with bullish market sentiments holding back buyers who were holding out for a better price. Currently the company has a total landbank of approximately 318 hectares worth a gross developmental value of RM2.4 billion and is targeting more land in Penang, Perak and Kota Kinabalu, Sabah. For the first nine months of FY12, the company achieved a net profit of RM39.9 million which was an increase of 136.3% over the RM16.9 million registered in the previous corresponding period.
Significance: HY looks to set a record year as its performance for 9M12 had exceeded that registered in FY11, while its acquisition plans will act to keep this positive momentum going.

Bursa Malaysia’s FY11 Profit Jumps 29% Despite Uncertainties In Global Markets
Exchange operator Bursa Malaysia reported a 15.1% gain in operating revenue for the full year ended 31 December 2011, while profit attributable to shareholders jumped a higher 29.3% to RM146.2 million. “2011 was a challenging year for markets around the globe… But we delivered a good set of results despite the difficult conditions and this demonstrates the tenacity and resilience of our market in times of uncertainty,” chief executive officer Dato’ Tajuddin Atan said in a press release. Notably, securities trading and derivatives trading sales were up 15% and 36% respectively during the period. With confidence of better performance in 2012, Tajuddin added that “we aim to further liberalise access to the market, while launching new products to give investors greater options for trading. Overall, we expect our 2012 financial performance to at least mirror that of, if not better than, 2011”.
Significance: Given the upcoming new products, enhancement of its trading system, as well as the participation in the ASEAN collaboration initiative, the performance of Bursa Malaysia is expected to remain resilient, made evident by the increased participation by both foreign and local investors.

This article is contributed by Shares Investment. Visit Sharesinv.com for the latest Singapore, Malaysia and China stock market news and reports.