Bright Packaging is a cash rich, well-established regional FMCG packaging company ( serving the tobacco, liquor, confectionery and pharmaceutical industries) and one of the largest aluminium foil packaging players in Asia Pacific.
Bright Packaging will be a great and interesting company to be invested into based on:
-Capacity expansion. The expansion may allow the company to meet its current and future demand of the growing clientele and possibly to cater to new markets.(expanding into the Russian market). With two new production lines becoming operational in April 2015, Bright Packaging is positioned to double revenue for 2015.
-Declining raw material prices positive for FY15. FY15 promises to be a better year for the company. Prices of raw materials like polyethylene (PE) and polypropylene (PP) films have been falling since 4Q14, in line with the decline in crude oil prices. This is not a surprise as PE and PP films are derivatives of crude oil.
-Diversified exports markets with reputable clientele. More than 90% of its products are export oriented. Major clients include Philip Morris and its affiliates, Marlboro, Dunhill, Lucky Strike, Kent, Pall Mall and Benson & Hedges. In the household goods and beverage segments, the group supplies to Johnnie Walker, Chivas Regal and various affiliates of Diageo, Unilever and Procter & Gamble.
-Inelastic demand. Over 90% of the products produced by Bright Packaging are supplied to the food and beverage packaging industry. The company supplies flexible packaging products to MNCs in the food industry. The food and beverage industry is generally a resilient business during periods of economic downturns.
-Favourable USD/MYR impact. Expected to benefit significantly from foreign exchange moving in company favour. Bright Packaging sales are denominated in US dollars which has appreciated 15% against the Ringgit. The global macroeconomics indicators continue to show signs of dollar strength for 2015 which should bode well for Bright Packaging.
-Very strong balance sheet with undemanding valuations. Bright Packaging is a debt free company with strong net cash per share of RM0.29 (accounted for 64% of share price).
Bright Packaging will be looking to trend higher in the coming days.
Results would be announced next week.In the annual reports,it is stated that the new production line is operational hence would contribute to the bottom line.In Jan they secured from a tobacco co in Russia to produce aluminium foil estimated abt usd 15 million would contribute positively in the coming quarters.It is attractive to even hold for long term based on current price of .50 cts.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
steveooikp
4,689 posts
Posted by steveooikp > 2015-05-10 11:24 | Report Abuse
This bright is siao loh.... i bot 55.... sold at 58.5.... now 49... can buy bk ?