KUALA LUMPUR: Johor property developer Daiman Development Bhd closed 10% higher yesterday from its previous closing
price after a report in The Edge Financial Daily noted that shares of the property firm were undervalued.
The counter rose to its 52-week high of RM3.44 yesterday before closing at RM3.41 for a 10% increase from last Friday’s close of RM3.10.
A total of 2.77 million shares changed hands yesterday.
The last traded price of RM3.41 compares with Daiman’s latest reported book value of RM4.89 a share, according to the company’s latest financial statements to Bursa Malaysia.
The Edge weekly, in its latest issue, carried a report by research firm InsiderAsia which assessed Daiman’s revised net asset value (RNAV) at RM11.45 a share.
InsiderAsia’s report indicated that the RNAV for Daiman includes the market value of its development land and book value of its investment properties.
Daiman’s cash is also closely being watched. InsiderAsia said that Daiman has been in a net cash position for the past few years.
This translates into a strong balance sheet for the firm.
“With rising land values over time, we believe it is a safe stock to buy and keep for the next generation,” said InsiderAsia which has also mentioned Daiman’s undervalued landbank.
Looking ahead, InsiderAsia believes Daiman should be able to achieve a net profit close to RM70 million for current financial year ending June 30, 2014.
This article first appeared in The Edge Financial Daily, on November 26, 2013.
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