Stock Name: Goodpack
Company Name: GOODPACK LIMITED
DBS Vickers Securities in an Oct 10 research report says: "Goodpack's top line grew 3% y-o-y in FY2009, as its market share for SR increased from 10% in FY08 to 15.3%; while its NR revenues dropped by 19%.
"The tepid revenue growth was insufficient to compensate for higher costs base from prior year's investment in intermediate bulk container (IBC) fleet as well as expansion of international network. Consequently, FY2009 earnings fell by 12%, as overheads surged 50% - while depreciation jumped by 31%. Rise in effective tax rate to 9.4% from 7.2% further dragged earnings.
"Target price lowered to $1.35 due to higher equity risk premium (ERP) in our DCF estimates to 10.5% from 6.5% to account for slower GDP outlook. No change in earnings forecasts made. MAINTAIN HOLD."
Company Name: GOODPACK LIMITED
| Research House: DBS Vickers | Price Call: HOLD | Target Price: 1.35 |
DBS Vickers Securities in an Oct 10 research report says: "Goodpack's top line grew 3% y-o-y in FY2009, as its market share for SR increased from 10% in FY08 to 15.3%; while its NR revenues dropped by 19%.
"The tepid revenue growth was insufficient to compensate for higher costs base from prior year's investment in intermediate bulk container (IBC) fleet as well as expansion of international network. Consequently, FY2009 earnings fell by 12%, as overheads surged 50% - while depreciation jumped by 31%. Rise in effective tax rate to 9.4% from 7.2% further dragged earnings.
"Target price lowered to $1.35 due to higher equity risk premium (ERP) in our DCF estimates to 10.5% from 6.5% to account for slower GDP outlook. No change in earnings forecasts made. MAINTAIN HOLD."
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