Flows:
SELLS: Kossan, AirAsia , TM
Technical Stock Alert:
Asuprem (RM0.235) - co manufactures, assembles, exports
electronic toys and games and assembles printed circuit boards. Vol and price
surged yesterday resulting in MACD cutting upwards after consolidating at 22c.
Recent developments that may generate interest in co
include: being awarded RM12.5m contract from Sphairon Tech, Germany to produce
EasyBox for Vodafone and emergence of new substantial s/h Mr Teoh Kok Aun from
Penang with 7.19% initial stake. Trading buy for a possible breakout with
immediate resistance at 30c, trades at P:B at mere 0.6x. (NL)
Co Update: DIJAYA (RM1.21)
Summary: major s/h Tan Sri Danny Tan has proposed to
inject 73 privately held properties for RM948.7m to be paid via RM250m cash +
10yr 3% coupon redeemable convertible unsecured loan stocks and a rights issue
of up to 491.3m shrs @ RM1.20. Key Highlights:
Key Deadlines for amalgation of assets:
May: Seeking SC approval
28 Jun: Shareholders approval
Sept: Completion of Rights Issue
Assets injected Reasonable
- Out of 68acres injected, Greater Klang Valley
(19acres), KL city centre (6acres), Johor city centre( 26acres), Penang
(2acres).
Price injected is also reasonable.
- Investment properties injected (RM385.2mil): 2/3 in
value injected is in Klang Valley with main asset, Dijaya Plaza (Jln Tun
Razak), injected at a reasonable RM727per sqft. Furthermore investment
properties comes with a 3+3+3yrs rental guarantee of RM42.7mil pa with
estimated net profit contribution of RM38mil giving a yield of close to 10%.
Acquisition Payment mode
Indicative net purchase consideration of RM950mil:
RM250mil cash + 3% 10 years RCULS for the remainder.
Tan Sri Dato's Danny Tan Chee Sing has underwritten
RM250mil for the rights issue, effectively receiving new Dijaya shares as
consideration.
Convertibility of RCULS favours existing shareholders as
the amount of RCULS allowed to be converted in one year cannot be more than
Dijaya's preceding financial year's net profit. Indicative conversion price is
also on a staggered basis.
Years from Issuance Date
Indicative Conversion Price
1-2
RM1.30
3-5
RM1.50
6-8
RM1.80
9-10
RM2.50
Other Highlights
- Gearing of Dijaya will fall from 1x to 0.7-0.8x after
the proposed acquisition, rights issue and after CP/MTN programme.
- Unbilled sales has reached RM538mil as at 4Q2011 and
take up from recent launch of Tropicana Danga Bay is encouraging with RM150mil
in sales recorded at RM700psf. Dijaya is looking to launch RM1.56bn and RM2.6bn
in GDV for 2012 and 2013 respectively with expected sales of RM790mil in 2012.
Total GDV will be RM36.6bn with dijaya's effective GDV of
RM28bn expected to be rolled out over 10years. Market capitalisation will also
surpass RM1bn improving company marketability and investability.
CONCLUSION:
Stock peaked at RM1.72 and collapsed all the way to
current lvls of
RM1.20 upon announcement of asset injection exercise.
Believe the selldown is overdone as RSI at 35, MACD is inching upwards, vol has
thinned out and has fallen back to rights price. Trades at PER 8x-accumulate.
(TYK/LJN)
