KUALA LUMPUR: AmResearch has upgraded TA ANN HOLDINGS BHD [] to a BUY from HOLD previously, with a raised fair value to RM6.30/share (from RM5.61/share previously).
It said on Wednesday, March 16 this was pegged at an upward revised FY11F EPS of 42 sen/share to an unchanged fair PE of 15x .
'We maintain our BUY call on JAYA TIASA HOLDINGS BHD [], with a fair value of RM6.00/share, premised on an unchanged fair PE of 15x against its FY11F EPS of 40 sen/share,' it said.
AmResearch said the upgrade is 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.
"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 said.
AmResearch'' said 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 on Wednesday, March 16 this was pegged at an upward revised FY11F EPS of 42 sen/share to an unchanged fair PE of 15x .
'We maintain our BUY call on JAYA TIASA HOLDINGS BHD [], with a fair value of RM6.00/share, premised on an unchanged fair PE of 15x against its FY11F EPS of 40 sen/share,' it said.
AmResearch said the upgrade is 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.
"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 said.
AmResearch'' said 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.
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