Goodpack

Goodpack: Announced on 19 March that there may be a bigger for its shares. Stanchart believes suitors could be Brambles, China Merchants Group (CMG), and private equity firms, with China Merchant Group being the top candidate, given its related company, China International Marine Containers, is Goodpack’s largest supplier of IBCs and already owns 2.5% of Goodpack. In addition, in 2010, CMG acquired Loscam, a leading pallet pooling company in Australia and Asia, which also offers IBC solutions. News reports from 2008 said that Loscam was interested in Goodpack. Historically, similar offers were concluded at 7.4-11.7x historical EV/EBITDA, but StanChart’s TP of Goodpack reflects 15.2x EV/EBITDA. The house sees this as reasonable, given Goodpack’s scale, profitability and growth profile. StanChart maintains Outperform on Goodpack with TP of $2.71.