Daiman - purely Johor play

Based on its latest annual report, it has 2957 acres of remaining landbank (excluding land currently (Nov 2013) under development) in Johor. In terms of location, 2640 acres are in Kota Tinggi, 115 acres are in Tebrau and 104 acres of strategic golf course are in Plentong.

Average land prices in Johor started rising since 2QFY2012 and over time, land prices will continue to increase. Daiman’s development land is carried at 2011 valuation, even through the price for land has risen.

Menara Landmark is an investment property the group acquired in Aug 2011.

Based on its latest annual report (FY2013 ended June 30), 94% of the group’s earnings were derived from the property development segment. It is set to launch projects with a total GDV of rm225 million.

Its revised net asset value is based on the estimated market valuation of Daiman’s development land. It is targeting local demand for landed residential properties priced at rm500000 to rm1 million a unit.

If offers food value, trading at a steel discount of 74% to its estimated revised net asset value per of rm11.45. It is a pure Johor play as the group’s remaining landbank of 2957 acres is located in Johor.

It has a strong balance sheet and has been in a net cash position from FY2008 to FY2013. Net cash as at FY2013 is 65 sen per share. If were to include other investments, which is basically short term investment in managed funds (upon disposal, funds cans be used for reinvestment or may be retained as cash), the cash increases to rm1.10 per share.

The Tan family from Singapore owns close to 51% of Daiman.