UPDATE 2-Sino-Forest sees log prices recovery by early '10

* Q1 EPS from cont ops $0.15, matching est.

* Rev up 31 pct to $177.2 mln

* Says log price up but not completely recovered

* Sees wood log prices recovering by early 2010

* Shares down more than 6 pct (Adds conf call details, analyst comment, updates share movement)

By Ashutosh Joshi

May 11 (Reuters) - Canada's Sino-Forest Corp (TRE.TO: Quote, Profile, Research) reported a higher quarterly profit in line with analysts' expectations, but said log prices have yet to completely recover from last year's slump.

Sino-Forest, which owns and operates significant plantations in China, said log prices had rebounded 5 percent to 10 percent after a nearly 15 percent drop last year, and sees prices rebounding only by early 2010.

Shares of the company fell 6.7 percent to C$11.97 in afternoon trade on the Toronto Stock Exchange.