Thursday, December 9, 2010


GLP: Annouced that the non-complete clause agreement with ProLogis was not material information. GLP has an existing non-compete agreement with ProLogis, which cannot buy
or build logistic distribution facilities in China until Feb 2011. The clause also prevents GLP from building and buying such facilities in Japan until its expiration….

Information, which was 'not specifically disclosed' in grp’s prospectus, means that it could see stiffer competition in China nx yr when the restriction is lifted…

Citi reiterates Buy, with $2.80 TP. Note that price weakness due to the misunderstanding of the non-compete agreement may present an enhanced entry opportunity. Cite grp’s unique and policy-friendly business model as well as its China-Japan dual exposure will lead it to maintain its leadership in Asia’s modern logistics facility industry….

UBS maintain Buy, with $2.65, expecting no immediate impact, while Merrill Lynch has Sell Call with $2.10 TP, citing that valuations are overstating the group's growth potential over the next 12 months.

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