Warehouse operator Global Logistic Properties Ltd is
expected to show stronger growth momentum as it sets out to
build up more assets in China, analysts said.
GLP shares inched down 0.7 percent to S$2.84, after results
showed that the company's revenue in the first quarter fell 18
percent due to sale of properties in Japan and a weakened yen
but net profit grew 43 percent.
More acquisition in China and asset recycling in Japan will
help future growth in the company's operations, said CIMB
analyst Donald Chua in a note.
"The pace of capital deployment is expected to rise in FY14
as it guides for more asset build," Chua said, while raising the
target price on the stock to S$3.35 from S$3.32.
Seven out of 16 analysts recommended "buy" on GLP, three
called for "strong buy" and two called for "sell", Thomson
Reuters database showed.
"We continue to like GLP for its strong execution track
record and anticipate the group's acceleration in its growth
track to act as a catalyst for share price performance," said
DBS Vickers Securities in a research note.