Hot Stock Daiman rises 9% on higher land revaluation

by **Cals** Wed 18 Jun 2014, 03:12

Hot Stock Daiman rises 9% on higher land revaluation

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Tuesday, 17 June 2014 15:51

KUALA LUMPUR (June 17): Daiman Development Bhd rose as much as 9% after its land in Plentong, Johor was revalued higher in line with its higher transaction price.

At 3.29 pm today, Daiman gained 21 sen or 6% to RM3.73. The third top gainer saw trades of some 2.67 million shares. It had earlier hit a high of RM3.84.

The commercial land, 50 per cent of which was disposed by Daiman to its joint venture (JV) partners Rainbow Crest Sdn Bhd and Everest Esplanade Sdn Bhd, was revalued higher at RM140 per square foot from RM70 per square foot.

InterPacific Securities’ remisier Sam Ng told theedgemalaysia.com that Daiman’s land revaluation contributed a ‘fantastic’ gain.

“Daiman is among the top gainers today as it has garnered market interest following its land revaluation,” he said over the telephone.

“The property counter is strongly undervalued,” he added.

Public Investment Bank Research in a note today said the higher land revaluation prompted the research house to raise its fair value for the stock to RM7.79 from RM7.22.

“We see further, deep, underlying value in the company after re-rating the commercial land in Plentong to RM140 per square foot from RM70 per square foot,” said the Public IB research team.

According to the research team, Daiman’s total land bank and properties stood at a market value of not less than RM2.5 billion following the higher revaluation, which is a ‘far cry’ compared to its current market capitalisation of RM741 million.

It added the property developer’s upcoming developments would become key drivers for the group’s future earnings.

“The upcoming JV development in Plentong as well as the opening of DoubleTree by Hilton hotel next month in Johor Bahru will see exciting recurring income coming onstream soon,” said the research team.

In August last year, Daiman entered into a 50:50 JV with Rainbow Crest and Everest Esplanade to develop the Plentong land.