Goodpack

Goodpack: OCBC recommends time to take profit and downgrades to SELL with $1.70 TP.
Note that following Goodpack’s announcement that it has entered into an agreement with GM , share price has risen almost 29% in slightly over a wk. While major development is a major catalyst for the group going forward, an almost one-third increase in grp’s mkt capitalization at this juncture seems overdone.

Based on grp’s recent 1H12 results, it is currently on track for a full-yr 9% yoy rev growth, which house deem insufficient to support the recent spike in its price. Furthermore, actual utilization of IBCs for GMSA has not commenced. Therefore, in light of the recent sharp price appreciation, profit-taking opportunity has emerged.