Stock Name: GWPLAST
Company Name: GW PLASTICS HLDG BHD
Company Name: GW PLASTICS HLDG BHD
| Research House: NETRESEARCH | Price Call: HOLD | Target Price: 1.19 |
Showing posts with label GWPLAST. Show all posts
Showing posts with label GWPLAST. Show all posts
November 12, 2012
October 4, 2012
Update Report
Stock Name: GWPLAST
Company Name: GW PLASTICS HLDG BHD
Company Name: GW PLASTICS HLDG BHD
| Research House: NETRESEARCH | Price Call: BUY | Target Price: 1.20 |
August 10, 2012
2QFY12 Results Report
Stock Name: GWPLAST
Company Name: GW PLASTICS HLDG BHD
Company Name: GW PLASTICS HLDG BHD
| Research House: NETRESEARCH | Price Call: BUY | Target Price: 0.84 |
March 9, 2012
Update Report
Stock Name: GWPLAST
Company Name: GW PLASTICS HLDG BHD
Company Name: GW PLASTICS HLDG BHD
| Research House: NETRESEARCH | Price Call: BUY | Target Price: 0.84 |
March 5, 2012
Briefing Note - GW Plastics - 5 Mar 2012
Stock Name: GWPLAST
Company Name: GW PLASTICS HLDG BHD
GW PLASTICS HOLDINGS BERHAD
Takeaways from Briefing
Lower FY11 result GW Plastics recorded marginally lower bottomline of RM19.6m in FY11 compared to RM21.0m in FY10, despite a 12% increase in revenue.
Revenue of RM344.1m was due to a 12% increase in overall volume to 46,900MT from increased production capacity of stretch film, additional facilities in new factory block and higher value-add printing. Both local and exports sales recorded growth of 2.4% YoY and 19.4% YoY respectively. The lower earnings were however affected by higher raw material costs (predominantly
resin prices which accounted for over 80% of total raw material costs) in 2011.
Total borrowing rose from RM31.1m in FY10 to RM34.9m for expansion funding. Its net gearing remains comfortable at 0.12x. The group has declared its second interim dividend of 3 sen per share to bring the total dividend for FY11 to 5 sen per share, a decent dividend yield of 7%.
Expanding into printing business GW Plastics had acquired laminating machine with solvent free and solvent based capability. Its machines are the higher end flexographic printers that have lower carbon footprint (a criteria required by developed countries), more costefficient. Currently, the existing players in the region have limited capabilities in solvent free lamination. The expansion allows GW Plastics to grow from its existing surface-printed packaging market and evolve into an integrated flexible packaging provider for blown firm, stretch films and laminated structures. The lamination expansion is expected to commence operation in 3QFY12.
GW Plastics deviates itself from other plastic packaging players in Malaysia by emphasizing in blown film production and specialized in catering food and beverage (F&B) clientele. We view the expansion into solvent free lamination positively. Following a change in consumer habits and the adoption of smaller families for most households, the requirements for flexible packaging in F&B segment will be in demand. Plastics packaging is still the cheapest alternative with longer shelf life for food and beverages. We suggest a fair value of RM0.87 for GFLO, pegging valuation at a forward PE of 6x, a 20% discount of Scientex's manufacturing segment PE valuation.
Source:Jupiter Securities Research 5 March 2012
Company Name: GW PLASTICS HLDG BHD
| Research House: JUPITER | Price Call: BUY | Target Price: 0.87 |
GW PLASTICS HOLDINGS BERHAD
Takeaways from Briefing
Lower FY11 result GW Plastics recorded marginally lower bottomline of RM19.6m in FY11 compared to RM21.0m in FY10, despite a 12% increase in revenue.
Revenue of RM344.1m was due to a 12% increase in overall volume to 46,900MT from increased production capacity of stretch film, additional facilities in new factory block and higher value-add printing. Both local and exports sales recorded growth of 2.4% YoY and 19.4% YoY respectively. The lower earnings were however affected by higher raw material costs (predominantly
resin prices which accounted for over 80% of total raw material costs) in 2011.
Total borrowing rose from RM31.1m in FY10 to RM34.9m for expansion funding. Its net gearing remains comfortable at 0.12x. The group has declared its second interim dividend of 3 sen per share to bring the total dividend for FY11 to 5 sen per share, a decent dividend yield of 7%.
Expanding into printing business GW Plastics had acquired laminating machine with solvent free and solvent based capability. Its machines are the higher end flexographic printers that have lower carbon footprint (a criteria required by developed countries), more costefficient. Currently, the existing players in the region have limited capabilities in solvent free lamination. The expansion allows GW Plastics to grow from its existing surface-printed packaging market and evolve into an integrated flexible packaging provider for blown firm, stretch films and laminated structures. The lamination expansion is expected to commence operation in 3QFY12.
GW Plastics deviates itself from other plastic packaging players in Malaysia by emphasizing in blown film production and specialized in catering food and beverage (F&B) clientele. We view the expansion into solvent free lamination positively. Following a change in consumer habits and the adoption of smaller families for most households, the requirements for flexible packaging in F&B segment will be in demand. Plastics packaging is still the cheapest alternative with longer shelf life for food and beverages. We suggest a fair value of RM0.87 for GFLO, pegging valuation at a forward PE of 6x, a 20% discount of Scientex's manufacturing segment PE valuation.
Source:Jupiter Securities Research 5 March 2012
February 28, 2012
4QFY11 Results Update
Stock Name: GWPLAST
Company Name: GW PLASTICS HLDG BHD
Company Name: GW PLASTICS HLDG BHD
| Research House: NETRESEARCH | Price Call: BUY | Target Price: 0.90 |
November 29, 2011
Update Report
Stock Name: GWPLAST
Company Name: GW PLASTICS HLDG BHD
Company Name: GW PLASTICS HLDG BHD
| Research House: NETRESEARCH | Price Call: BUY | Target Price: 0.90 |
November 22, 2011
3QFY11 Results Report
Stock Name: GWPLAST
Company Name: GW PLASTICS HLDG BHD
Company Name: GW PLASTICS HLDG BHD
| Research House: NETRESEARCH | Price Call: BUY | Target Price: 0.90 |
August 24, 2011
2QFY11 Results Update
Stock Name: GWPLAST
Company Name: GW PLASTICS HLDG BHD
Company Name: GW PLASTICS HLDG BHD
| Research House: NETRESEARCH | Price Call: BUY | Target Price: 0.94 |
March 22, 2011
GWPLAST - RHB Research: Fair value for Great Wall Plastics at 96 sen
Stock Name: GWPLAST
Company Name: GW PLASTICS HLDG BHD
Research House: RHB
KUALA LUMPUR: RHB Research Institute has an indicative fair value for Great Wall Plastics at 96 sen, based on target FY11 PER of 8.0 times, which is a 10% premium over its peers weighted average FY11 PER.
'We believe the premium is fair given GWP's clarity in terms of its topline growth projections, and to a certain extent its earnings visibility,' it said on Tuesday, March 22.
GWP produces cast films and blown films. Cast films are low margin, low value-added, high volume products, while blown films are the opposite with high margins, high value-added, low volume products.
Blown films accounted for 68.1% (RM210m) of GWP's revenues, and about 75% (RM18.2m) of PBT translating into a PBT margin of 8.7%.
Cast film accounted for 32.2% (RM99.3m) and about 25% (RM6m) of GWP's FY10 revenues and PBT respectively, translating to a PBT margin of 6%.
'We understand that by end-FY11, GWP would have a total estimated combined production capacity of 62,000 tonnes (2010: about 47,100 tonnes).
'Based on our estimates, after accounting for the RM21m planned capex, and an extra RM10m in capex (assuming GWP does decide to increase its production capacity more than planned), we believe GWP could pay dividends in the range of 30%-40% of net profit in FY11, without having to increase its net gearing level from 0.1 times currently. This translates to a yield of 5%-7% based on its current share prices.
'We believe GWP's current valuations are attractive as it is only trading at 6 times FY11 PER, as compared its peers weighted average FY11 PER of 7.3 times. Furthermore, its current share price of 73 sen is lower than its listing price of 76 sen,' it said.
Company Name: GW PLASTICS HLDG BHD
Research House: RHB
KUALA LUMPUR: RHB Research Institute has an indicative fair value for Great Wall Plastics at 96 sen, based on target FY11 PER of 8.0 times, which is a 10% premium over its peers weighted average FY11 PER.
'We believe the premium is fair given GWP's clarity in terms of its topline growth projections, and to a certain extent its earnings visibility,' it said on Tuesday, March 22.
GWP produces cast films and blown films. Cast films are low margin, low value-added, high volume products, while blown films are the opposite with high margins, high value-added, low volume products.
Blown films accounted for 68.1% (RM210m) of GWP's revenues, and about 75% (RM18.2m) of PBT translating into a PBT margin of 8.7%.
Cast film accounted for 32.2% (RM99.3m) and about 25% (RM6m) of GWP's FY10 revenues and PBT respectively, translating to a PBT margin of 6%.
'We understand that by end-FY11, GWP would have a total estimated combined production capacity of 62,000 tonnes (2010: about 47,100 tonnes).
'Based on our estimates, after accounting for the RM21m planned capex, and an extra RM10m in capex (assuming GWP does decide to increase its production capacity more than planned), we believe GWP could pay dividends in the range of 30%-40% of net profit in FY11, without having to increase its net gearing level from 0.1 times currently. This translates to a yield of 5%-7% based on its current share prices.
'We believe GWP's current valuations are attractive as it is only trading at 6 times FY11 PER, as compared its peers weighted average FY11 PER of 7.3 times. Furthermore, its current share price of 73 sen is lower than its listing price of 76 sen,' it said.
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