STOCKS NEWS SINGAPORE-GLP outlook boosted by China asset growth - analysts

Last Updated: Mon, May 27, 2013 04:00 hrs

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.

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