Yesterday, a block of 10.2 million Titijaya shares, or 2.5% of the company, changed hands in an off-market trade at RM1.72. This was on the back of another off-market transaction of 15 million Titijaya shares done at RM1.76 on Oct 18. Sources said the buyer of the blocks of shares was either CREC or some other related China parties.
PETALING JAYA: Titijaya Land Bhd
’s (Titijaya) recent joint-venture agreement with China Railway Engineering Corporation (CREC) to develop a land at Jalan Ampang for estimated gross development value (GDV) of RM2.1bil, could add RM120mil to its revalued net asset valuation (RNAV) or 21 sen on fully diluted per share, according to Hong Leong Investment Bank (HLIB).
HLIB said on Tuesday that Titijaya is also focusing on the affordable housing segment, following its proposal to acquire NPO Builders for a total consideration of RM115.6mil. NPO owns two pieces of freehold land with estimated GDV of RM2.4bil.
The research house said that one of the key strengths of Titijaya is its ability to expand landbank through joint ventures.
“Apart from that, land swap with strategic partners such as government agencies and synergistic partners, also allows Titijaya to expand its landbank.
“This will also help to minimise capital outlay and without land holding cost,” said HLIB in its report.
The research house indicated that if the recent joint-venture deal with CREC is included, total GDV for future launching had increased by 21% to RM12bil. Future GDV is expected to sustain sales over the next 15 years.
“We estimate earnings to be relatively flat in financial year of 2017 (FY17) and grow by 2 years compound annual growth rate (CAGR) of 32% to RM131mil in FY19.
“Price-to-earnings ratio will drop to 6.6 times. This is mainly due to contributed by the launching of Riveria Central and 3rdNvenue,” said HLIB.
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