Stock Name: JTIASA
Company Name: JAYA TIASA HOLDINGS BHD
Research House: RHB
KUALA LUMPUR: RHB Research Institute is maintaining its Overweight call on the timber sector given the promising outlook of firm average selling prices for plywood and logs.
The research house said on Wednesday, Dec 29 timber companies which have significant oil palm PLANTATION [] such as Jaya Tiasa and Ta Ann are also set to benefit from rising crude palm oil prices.
'Hence, our top picks are Jaya Tiasa (OP, FV = RM5.78) and Ta Ann (OP, FV = RM5.92),' it said.
RHB Research said the latest October 2010 Japan housing starts growth of 6.4% on-year'' was the fifth consecutive on-year rise following the previous 17.7% and 20.4% on-year growth recorded in September and August respectively. This was supported by the 3.4% on-year increase in number of building permits issued in Oct 2010.
'Going into 2011, we believe the tight log supply situation in Sarawak is likely to continue for a few more months due to seasonal factors, before log production starts to normalise.
'Nevertheless, we believe tropical log prices would remain firm even when log production starts to pick up, thanks largely to the huge and robust demand from India and China,' it said.
Company Name: JAYA TIASA HOLDINGS BHD
Research House: RHB
KUALA LUMPUR: RHB Research Institute is maintaining its Overweight call on the timber sector given the promising outlook of firm average selling prices for plywood and logs.
The research house said on Wednesday, Dec 29 timber companies which have significant oil palm PLANTATION [] such as Jaya Tiasa and Ta Ann are also set to benefit from rising crude palm oil prices.
'Hence, our top picks are Jaya Tiasa (OP, FV = RM5.78) and Ta Ann (OP, FV = RM5.92),' it said.
RHB Research said the latest October 2010 Japan housing starts growth of 6.4% on-year'' was the fifth consecutive on-year rise following the previous 17.7% and 20.4% on-year growth recorded in September and August respectively. This was supported by the 3.4% on-year increase in number of building permits issued in Oct 2010.
'Going into 2011, we believe the tight log supply situation in Sarawak is likely to continue for a few more months due to seasonal factors, before log production starts to normalise.
'Nevertheless, we believe tropical log prices would remain firm even when log production starts to pick up, thanks largely to the huge and robust demand from India and China,' it said.
No comments:
Post a Comment