Kenanga Research raised its target price for Dijaya
Corporation Berhad to 2.15 ringgit per share from 2.05
ringgit after the property firm announced a 1.3 billion ringgit
($427 million) land purchase deal.
"We are neutral to positive on the acquisition," Kenanga
said in a research note on Tuesday, adding that the development
project will take 15 to 20 years to be realised and any impact
on earnings is likely only from the financial year 2015.
In a stock exchnage filing late on Monday, Dijaya Corp said
it has agreed with the Selangor state government to buy 1,172
acres of land for 1.3 billion ringgit in a deal that would more
than double its land bank.
Kenanga Research maintained its "outperform" call on Dijya
Dijaya Corp was down 1.94 percent at 1.52 ringgit per share
while the benchmark composite index was down 0.49
percent at 1689.52.
1017 (0217 GMT)
($1 = 3.0415 Malaysian ringgits)
(Reporting by Siva Sithraputhran in Kuala Lumpur; Editing by