PETALING JAYA: Some 14.9 million shares of property developer Titijaya Land Bhd, representing a 3.7% stake, was crossed off-market yesterday at a price of RM1.76, with sources indicating that investors are positioning themselves for more major developments taking place over the coming weeks.

Titijaya closed one sen higher to RM1.81 yesterday on a volume of 1.45 million shares.

According to sources, the block of 14.9 million shares could be a local institutional fund that may be positioning itself ahead of Budget 2017 to be tabled on Friday.

Increasingly viewed as a “political play”, Titijaya’s acquisition of a property company that came with development orders for affordable homes some three weeks ago strengthened the market’s view of this play.

Sources had speculated that a substantial offtaker would come in to bulk-buy some 20% of the 6,000 to 7,000 affordable homes.

Meanwhile, this off-market transaction follows a 10% private placement by Titijaya that was completed in September, where some 36.67 million shares were placed out at RM1.35. The placee of that fund was believed to be a foreign institution.

Shares in Titijaya had been on a roll over the last few weeks, with the stock rising from the RM1.50 level some three weeks ago, following its acquisition of NPO Builders Sdn Bhd for RM115.61mil via the issuance of shares.

NPO Builders has proposed developments to the tune of RM2.4bil.

Despite the share price rise, Titijaya is trading at an undemanding valuation. At RM1.81, the stock is trading at a 2017 price-to-earnings ratio of 11.93 times, with an indicative gross dividend yield of 2.51%. As of June 30, the company had a book value of RM1.49.

Titijaya’s founder and managing director Tan Sri Lim Soon Peng and family control the company with a stake of some 58.38%. Other substantial shareholders include AIA Bhd with a 5.96% stake, the Employees Provident Fund with 4.38% and Lembaga Tabung Haji with 4.33%.

Titijaya has a total landbank of 432 acres, valued at RM8.6bil. It has unbilled sales of some RM500mil.

For the financial year ended June 30, the company recorded a 16% drop in net profit to RM68.34mil on the back of a 17.4% jump in revenue to RM400.08mil.

In April, Titijaya roped in The Ascott Ltd to help develop two projects in Shah Alam, Selangor, and Penang with an estimated combined gross development value of RM4.1bil.

The partnership marks the first collaboration between Titijaya and an international company. The company plans to ride on Ascott’s extensive market network and operational capabilities.

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