Stock Name: Adampak
Company Name: ADAMPAK LIMITED
DMG & Partners Research in a Jan 16 research report says: "Last October, the group updated that its Thai plant in the Hi-Tech Industrial Estate, Ayutthaya while not badly affected by the flood, stopped operations as a safety precaution.
"The news meant that Adampak will take an impairment charge of US$1.4 million in FY2011 for damages to its Thai plant, but this will be covered by insurance upon settlement. The rapid relocation to a new facility will enable the company to restore operations in Thailand and capitalize on an eventual upturn in the HDD as supply chain bottlenecks are resolved.
"The stock is currently trading at 5x FY12 P/E and offers an attractive yield of 11%. Given the solid net cash balance (6.4 cents per share) as well as the healthy operating cash flows, we think the company will have little difficulties to sustain the high payout. Target price of 31 cents. MAINTAIN BUY."
Company Name: ADAMPAK LIMITED
| Research House: DMG | Price Call: BUY | Target Price: 0.31 |
DMG & Partners Research in a Jan 16 research report says: "Last October, the group updated that its Thai plant in the Hi-Tech Industrial Estate, Ayutthaya while not badly affected by the flood, stopped operations as a safety precaution.
"The news meant that Adampak will take an impairment charge of US$1.4 million in FY2011 for damages to its Thai plant, but this will be covered by insurance upon settlement. The rapid relocation to a new facility will enable the company to restore operations in Thailand and capitalize on an eventual upturn in the HDD as supply chain bottlenecks are resolved.
"The stock is currently trading at 5x FY12 P/E and offers an attractive yield of 11%. Given the solid net cash balance (6.4 cents per share) as well as the healthy operating cash flows, we think the company will have little difficulties to sustain the high payout. Target price of 31 cents. MAINTAIN BUY."
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