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 Corp.
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.
($1 = 3.0415 Malaysian ringgits)
Reporting by Siva Sithraputhran in Kuala Lumpur; Editing by Jijo Jacob