MIDF raises Century Logistics' traget price

MIDF Research raised its target price on Century Logistics Holdings Bhd
to RM1.82 from RM1.70 even after the company's first-quarter earnings
came in below market expectations.

"We opine that the logistics
business may recover in the second half of 2013 as overall
manufacturing activities are set to pick up again," the research house
said in a research note on Friday.

Maintaining a 'neutral' call
on the stock, MIDF said another two distribution centres by Century
Logistics with a total size of 400,000 sq ft will be ready by this
quarter and may contribute RM8-RM9 million additional rental income to
the company nnually.

"We expect the warehouse business to help
fill in the earnings void left by the downsizing of its oil and gas
transportation segment," it added.

Century Logistics reported a
lower-than-expected 3.4 per cent year-on-year rise in net profit at
RM4.45 million for the quarter ended March, mainly due to reduced
activities in the company's oil and gas logistics and contract business.

The
counter dropped 1.76 per cent to RM1.67 at 10.04am, underperforming the
benchmark stock index's 0.28 per cent rise.-- Reuters