Timber group JAYA TIASA HOLDINGS has just completed itsFYE Apr 30, 2008 during which earnings could come in at half of that for FY07.
There is anticipation that its earnings in the current financial year (FY2009) could replicate that of FY07, which was a fairly good year for the log and plywood market.
In FY07, the group earned a net profit of RM121.9m, or EPS of 47.5 sen, close to TA ANN HOLDINGS Net Profit of RM130.4mfor the FYE Dec 31, 2006.
In the timber industry, TA ANN is the most widely followed by fund managers, having been consistent in its investor relations.
JAYA TIASA has just commenced this process so that it will increasingly appear on the radar screen of fund managers. There is reason to anticipate JAYA TIASA would improve on its earnings for FY08 as plywood prices appear to have started on a recovery path over the since early 2008. After declining for a about year, plywood prices rose moderately in Feb 2008 and improved further month-on-month through Mar and Apr 2008 as was reported in STARBIZ on May 1, 2008.
Plywood prices declined YOY but analysts expect thistrend to reverse in the coming months. The rate of this momentum is not clear yet but macro factors point to the possibility that this pace could accelerate as exports of plywood from China and logs from Russia are expected to decline.
This time, JAYA TIASA