Stock Name: JTIASA
Company Name: JAYA TIASA HOLDINGS BHD
Research House: RHB
KUALA LUMPUR: Timber-related stocks continued their rally on Tuesday, March 29 and were among the top gainers in early trade on expectations of a rise in demand for timber-products.
At 9.35am, Subur Tiasa jumped 46 sen to RM3.90, Jaya Tiasa up 29 sen to RM6.45, Ta Ann 20 sen to RM6.69, WTK 10 sen to RM1.94 while Leweko edged up one sen to 22 sen.
Meanwhile, RHB Research in a note March 29 raised its fair value for Jaya Tiasa to RM7.20 from RM6.30 after the company posted RM92.4 million for 9MFY04/11.
The research house said the result was above its expectations.
'We believe key variances were higher log prices (+23% y-o-y) for 9M (versus our +18% projection for FY04/11) and higher FFB production growth (of 81% y-o-y for 9M versus our +71% projection for FY04/11).
'Due to the favourable outlook for the timber sector after the Japan earthquake, we upgrade our target PER for the timber division to 14 times CY11 earnings. In addition, despite the recent downgrade in our PLANTATION [] sector valuation targets, we are keeping our target PER of 13x CY11 earnings for the plantation division due to the significant growth in FFB production volume projected over the next few years,' it said.
Company Name: JAYA TIASA HOLDINGS BHD
Research House: RHB
KUALA LUMPUR: Timber-related stocks continued their rally on Tuesday, March 29 and were among the top gainers in early trade on expectations of a rise in demand for timber-products.
At 9.35am, Subur Tiasa jumped 46 sen to RM3.90, Jaya Tiasa up 29 sen to RM6.45, Ta Ann 20 sen to RM6.69, WTK 10 sen to RM1.94 while Leweko edged up one sen to 22 sen.
Meanwhile, RHB Research in a note March 29 raised its fair value for Jaya Tiasa to RM7.20 from RM6.30 after the company posted RM92.4 million for 9MFY04/11.
The research house said the result was above its expectations.
'We believe key variances were higher log prices (+23% y-o-y) for 9M (versus our +18% projection for FY04/11) and higher FFB production growth (of 81% y-o-y for 9M versus our +71% projection for FY04/11).
'Due to the favourable outlook for the timber sector after the Japan earthquake, we upgrade our target PER for the timber division to 14 times CY11 earnings. In addition, despite the recent downgrade in our PLANTATION [] sector valuation targets, we are keeping our target PER of 13x CY11 earnings for the plantation division due to the significant growth in FFB production volume projected over the next few years,' it said.
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