Goodpack

Goodpack: DBSV upgrades to Buy, keeps TP unchg at $1.95. Believes the co should see stronger growth from 4QFYJun13 with new contracts from the Russian market and Lanxess’ new plant in Singapore. Says momentum should continue into FY14 with the pickup in rubber trade volume on the back of pent up demand in the replacement tyre market, which constitutes c.53% of total rubber demand, following 20 months of weakness. In addition, cost savings from the global tender exercise will help to improve net margins by an estimated 1ppt. Expects these to fuel FY14/15F net profit growth of 25%/16%. Notes, the recent price weakness is a buying opportunity.