Stock Name: Goodpack
Company Name: GOODPACK LIMITED
CIMB in a Dec 12 research report says: "Goodpack has been trying to penetrate deeper into its existing markets, boosting margins and breaking into the auto-parts transportation industry. Thus far, it has succeeded in increasing its market share in the natural and synthetic rubber transportation segments.
"We expect Goodpack to generate US$50 million-60 million of operating cash flows annually, which should be used to pare down debt. Balance sheet will only get stronger, in our view. This will be a major plus in an environment of uncertainties.
"Precipitated by French investor Amundi's decision to trim its stake below 5%, the stock has shed 13.5% since Nov 28, to underperform the index by 14%. It is now trading at 9.6x CY13 P/E, 1 standard deviation below its 10-year historical average. Target price of $1.50. UPGRADE TO OUTPERFORM."
Company Name: GOODPACK LIMITED
| Research House: CIMB | Price Call: BUY | Target Price: 1.50 |
CIMB in a Dec 12 research report says: "Goodpack has been trying to penetrate deeper into its existing markets, boosting margins and breaking into the auto-parts transportation industry. Thus far, it has succeeded in increasing its market share in the natural and synthetic rubber transportation segments.
"We expect Goodpack to generate US$50 million-60 million of operating cash flows annually, which should be used to pare down debt. Balance sheet will only get stronger, in our view. This will be a major plus in an environment of uncertainties.
"Precipitated by French investor Amundi's decision to trim its stake below 5%, the stock has shed 13.5% since Nov 28, to underperform the index by 14%. It is now trading at 9.6x CY13 P/E, 1 standard deviation below its 10-year historical average. Target price of $1.50. UPGRADE TO OUTPERFORM."
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