Goodpack’s 3QFY14 revenue increased 14.2% YoY to US$51.2m while PATMI increased 20.2% to US$13.1m. The strong set of growth came from increased penetration in existing markets as a result of new customer conversion and increased demand from existing customers. The results met our expectations as 9MFY14 revenue of US$154.2m forms 73.5% of our FY14 forecast, while PATMI of US$39.4m makes up 73.2% of our expectation.

In 3QFY14, depreciation and amortisation expense increased 11.3% YoY to US$5.0m due to increase in Intermediate Bulk Container (IBC) fleet size; other operating expenses increased 7.2% to US$6.0m due to the increase in operating leasing expenses on the rental of the IBCs. We will be speaking to management later and put our Hold call and DCF-based fair value of S$2.17 under review.

Source: OCBC Research - 14 May 2014