Tuesday, February 4, 2014

OCBC Report 5 Feb 14

KEY IDEA

Goodpack Limited: A promising 2014

Summary:
We met up with Goodpack’s management and better understood their growth drivers in 2014. While the impact of economic recoveries in the US and Europe on Goodpack’s growth is likely to be limited, we expect new SR accounts to be the key driver for growth over FY14/15 as Goodpack continues to engage auto parts manufacturers. In addition, we believe that, given the cost savings of up to 20% and Goodpack’s proactive role as an on-the-ground partner, scaling up and adoption will feature more prominently in Goodpack’s earnings profile from 2QFY15 onwards. Upgrade to BUY with new fair value estimate of S$2.17 from S$1.87 due to change in analyst and updated assumptions.(Research Team)

For more information on the above, visit
www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES


- US stocks closed with modest gains on Tue, clawing back a fraction of their worst losses since Jun made a day earlier.


- Private equity deal-making activity in the region saw another down year in 2013, with firms closing 900 deals, totalling US$11.4b in disclosed investments, according to Thomson Reuters.


- The Singapore IPO of some shopping malls of South Korea's largest mall owner Lotte Shopping has gained regulatory approval, said The Wall Street Journal.


- Rex International's shares rose 8% to 65 S cents yesterday amid heavy trading, after it said that a joint-venture unit had found hydrocarbons in a second exploration well in Oman.


- Yongnam Holdings said that its consortium has been invited back to bid for Myanmar's Hanthawaddy International Airport project, after an unsuccessful attempt last year.


- Otto Marine has sold two vessels to its associate for a total sum of US$30m.


- Lian Beng Group said its wholly owned subsidiary, Deenn Engineering, has secured a construction contract worth about S$117m.

- Wee Hur Holdings said the HDB has awarded it a S$103.6m building works project in Sengkang comprising 727 dwelling units as well as contingency works.


- Logistics Holdings has clinched a S$31.7m contract from the HDB to design and build electrical substations and switch rooms, and carry out related works, in Potong Pasir, Bishan and Serangoon.

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