March 16, 2011

TAANN - Ta Ann jumps on AmResearch upgrade

Stock Name: TAANN
Company Name: TA ANN HOLDINGS BHD
Research House: AMMB

KUALA LUMPUR: Shares of TA ANN HOLDINGS BHD [] advanced on Wednesday, March 16 following AmResearch upgrading the stock to a Buy with a higher target price of RM6.30 (from RM5.61).

At 3.50pm, Ta Ann rose 18 sen to RM5.05 with 418,200 shares done.

AmResearch said the upgrade was premised on the anticipated surge in demand, and more importantly higher prices, for plywood in the wake of Japan's worst earthquake that has devastated a large swath of land along the country's north-eastern coastline.

Ta Ann exports over 90% of its plywood products to Japan, it said.

'Consequentially, log prices are also expected to strengthen. Many of the country's plywood and wood-based mills are located in the cities of Sendai and Ishinomaki in the Miyagi Prefecture, which was one of the worst hit areas by the ensuing tsunamis that reached heights of up to 10m (over 30 feet).

'It is believed that many of the plywood facilities were destroyed. This is apart from the thousands of buildings, including homes, which had been wiped out,' it said.

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