Dijaya Corporation

Most of the people from KL and Selangor know about Tropicana, which is among the most luxury residential area. However, most of them may not aware of the developer for this area. Tropicana is a project from Dijaya Corp.

It appears that this developer is out of the radar of most of the investors and analysts at this moment. The company feels that it is not the time to call analysts for a briefing untiil it has built up its landbank, according to its MD Tong Kien Oon in an interview.

Its share price is no trading significantly lower its net book value and estimated RNAV. It closed at RM1.42 last Friday and ths stock is trading at about 34% discount to its book value of RM2.16.

InsiderAsia believes the value of land owned by Dijaya is severely understated -Tropicana: cost RM10.54 psf vs market value of about RM150 psf; and
Damansara Indah: cost RM10.15 psf vs market value of about RM130psf.


In Tropicana, the company will be launching 400 units of low-rise condo with an indicative pricing of RM300 psf. The GDV is RM500mil.

In Damansara Indah, Dijaya launched 88 units of 3-storey semi-d with built up of about 6,200 sq ft and priced from RM2mil each. Two blocks of low-rise condo in the same area will be launched soon.

'Based on the upcoming launches, we expect Dijaya's profit too see a huge jump in the next 2 to 3 years' says an analyst.


Dijaya is also developing Tropicana City, valued at RM600mil in SS2 - 3-storey Tropicana Mall, a 24-storey block of serviced apartments and a 12-storey office tower.

The mall and office tower will be ready in 3Q of 2008 and the apartment block in 2009. The mall is expected to bring in rental income of between RM20mil to RM30mil per annum.

Lastly, Dijaya also has a stake in a JV company in India. It is developing a 25 acres land in Hyderabad, India and it is scheduled for launch in the 1H of 2008. Base on the stake in the JV company, the project is expected to bring in revenue of RM400mil.