GLP started at outperform by CIMB

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 2.24

CIMB Research has started coverage of Global Logistic Properties, which owns warehouses in Japan and China, with an outperform rating and a target price of $2.24.

GLP has the size and network in logistics to multiply its tenant base, given its ability to lease space to multinational corporations in important cities under the same landlord, said CIMB in a research report.

The company also works closely with the Chinese government to acquire land, which provides GLP with a development pipeline on top of the 5.1 million square meters of space it already has.

"It has unique exposure to China’s growth, backed by stable Japan cashflows and a highly competitive capital structure," said CIMB in a report.

It also added that GLP is trading at a 20% discount to its restated net asset value and at more attractive multiples compared to its peers.

At 11 a.m., shares of GLP were 0.3% higher at $1.795, but have fallen 16.4% since the start of the year.