Adampak rated 'buy' by DMG

Stock Name: Adampak
Company Name: ADAMPAK LIMITED

Research House: DMG

Price Call: BUY

Target Price: 0.36

DMG & Partners Research in a Mar 7 research report says: "Adampak posted its 4Q11 results with a net loss of US$0.2 million which is in line with our estimates. Taking away the one-off impairment charges, full year core PATMI fell 30.0% y-o-y to US$6.5 million mainly attributable to the reduction in sales as a result of the Thai flood disruption.

"Full year dividends of 2.0 cents is also in line with expectation. Moving on, we expect the group to restore its production capability in Thailand by April, in time for its customer’s recovery. Subsequently, we expect the group’s second half performance to be strong and the full year dividend to recover back to 3.0 cents.

"Unchanged target price of 36 cents based on our Discount Dividend Model. MAINTAIN BUY."

Adampak rated 'buy' by DMG

Stock Name: Adampak
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."

Adampak rated 'buy' by DMG

Stock Name: Adampak
Company Name: ADAMPAK LIMITED

Research House: DMG

Price Call: BUY

Target Price: 0.31

DMG & Partners Research in a Nov 15 research report says: "Adampak's 3Q11 PATMI of US$1.6 million (-28.2% y-o-y) came in within expectation. Gross margin fell by 3.7ppt as a result of some forex losses while revenue stream remained stable.

"FY2012 is expected to be a strong year compared to FY2011. We believe that the business is in good hands as the management put great emphasis on risk control as they steer the company through a volatile period. Target price of 31 cents based on our Discount Dividend Model.

"Adampak still managed to generate a net cash flow of US$0.3 million for 9MFY11, making its net cash balance to hit a record high of US$13.0 million, equivalent to 6.4 cent per share. We think the group is able to sustain a steady dividend payout of more than 60% of its earnings, which works out to a yield of 9%. MAINTAIN BUY."