Good pack

Good pack: FY13 results were in-line with expectations. Revenue grew by a smaller 7.7% y/y to US$190.9m while net profit improved 13.4% y/y to US$51.3m as its cost saving initiatives helped to offset higher depreciation and financing costs from a larger fleet and increased borrowings respectively. Similar to last year (FY12), management declared a final dividend of 2 S cents and a special dividend of 3 S cents. OCBC lower revenue forecasts for FY14, but still expect growth improvement following the commencement of key clients’ synthetic rubber (SR) operations in Singapore and a new SR contract in Russia. In terms of margins, only expect a small drop-off as continued cost saving initiatives should keep a lid on logistic and handling expenses. In light of its unchanged fundamentals and recent share price correction, house maintain BUY on Goodpack with a slightly lower fair value of $1.69.