Hot Stock Daiman rises 8.7% on RM1.4b Johor project, stock seen undervalued

by **Cals** Tue 13 May 2014, 01:20

Hot Stock Daiman rises 8.7% on RM1.4b Johor project, stock seen undervalued

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Monday, 12 May 2014 11:14

KUALA LUMPUR (May 12): Daiman Development Bhd rose as much as 8.7% on news the Johor-based property developer is planning a RM1.4 billion integrated project in Plentong, Johor.

At 10.54am , Daiman gained 24 sen or 7.5% to RM3.45. The third-largest gainer saw trades of some 1.1 million shares.

It had earlier risen 28 sen to a high of RM3.49.

A local daily quoted Daiman chief financial officer Eddie Chan as saying the 5ha (12.3-acre) project, in partnership with Datuk Tong Kooi Ong, the executive chairman of The Edge Media Group and Datuk Allan Lim Kim Huat, both of Sunrise Bhd fame, had garnered approval for the project from authorities.

The project that seeks to replicate the Publika concept in Mont’Kiara, will comprise high-rise residences, offices and retail units. It will be launched over three phases at the end of this year.

In August last year, Daiman entered into a 50:50 joint venture with Rainbow Crest Sdn Bhd, which is jointly owned by Tong and Lim, and Everest Esplanade Sdn Bhd, to develop the Plentong land.

The land is owned by Daiman.

In a note today, Public Investment Bank (Public IB) deemed the project as an "exciting near-term catalyst" for Daiman.

Public IB's research team said: “The involvement of Tong and Lim to replicate the Publika concept in Johor Bahru will significantly enhance the value of Daiman’s golf course land.”

Meanwhile, Public IB said Daiman has land bank and properties in Johor with a collective market value of not less than RM2 billion. This compares to its currect market capitalisation of RM676 million.

“Daiman has been sitting on inexpensive land bank in Johor with good accessibility and freehold land status.

“We see deep underlying value in the company as it could be worth at least RM1.5 billion or a fair value of RM7.22 per share,” said the Public IB research team.

Public IB said Daiman is unrated.

From a technical perspective, Kenanga Research said Daiman's share price would see immediate support and resistance levels at RM3.05 and RM3.22 respectively.