Adampak

Adampak has just provided another update on their operations in Thailand.....
http://info.sgx.com/webcoranncatth.nsf/V...4002A16CE/$file/Adampak_Update_Thailand_Flood_13012012.pdf?openelement

Adampak is moving its Thai operations to a new leased factory site located in Amata Nakorn Industrial Estate, Chonburi Province.....
http://www.amata.com/eng/industrial.html

The existing damaged factory at Ayutthaya will be restored (with the related costs covered by insurance) and returned to its owner.

Adampak will take an approx. USD1.4m (non-cash) charge in Q4 being the estimated loss due to damaged inventories and impairment of fixed assets in the existing damaged factory at Ayutthaya, pending insurance settlement.

I think it makes a real difference for a company like Adampak with a large cash reserve. The company can afford to simply spend the money first on a new factory and bring it to speed soon, pending claiming back from insurance what has been lost on the damaged factory.

Apple just released its supplier list. WD and Seagate supply to Apple. Could Adampak be supplying indirectly to Apple (be a secondary supplier)? Brady is a direct supplier to Apple though. It's in the list. Other companies that are listed in SGX and supply to Apple include Broadway, Hi-P.

http://images.apple.com/supplierresponsi...t_2011.pdf

(15-01-2012, 11:44 PM)FFNow Wrote: Apple just released its supplier list. WD and Seagate supply to Apple. Could Adampak be supplying indirectly to Apple (be a secondary supplier)? Brady is a direct supplier to Apple though. It's in the list. Other companies that are listed in SGX and supply to Apple include Broadway, Hi-P.

http://images.apple.com/supplierresponsi...t_2011.pdf

The list merely shows Apple's direct suppliers in 2011. We can assume these supplier names are good enough in the eyes of Apple - i.e. being able to meet Apple's technical, production, delivery, and pricing requirements. Whether the individual suppliers made good money supplying to Apple in 2011, nobody knows; some of them may in fact lose money and choose not to supply to Apple in 2012.

I guess it may be useful someone sends the same list to Adampak's CEO, and asks him which are the names the company already maintains a supplier relationship.

(13-01-2012, 08:02 PM)dydx Wrote: Adampak has just provided another update on their operations in Thailand.....
http://info.sgx.com/webcoranncatth.nsf/V...4002A16CE/$file/Adampak_Update_Thailand_Flood_13012012.pdf?openelement

Adampak is moving its Thai operations to a new leased factory site located in Amata Nakorn Industrial Estate, Chonburi Province.....
http://www.amata.com/eng/industrial.html

The existing damaged factory at Ayutthaya will be restored (with the related costs covered by insurance) and returned to its owner.

Adampak will take an approx. USD1.4m (non-cash) charge in Q4 being the estimated loss due to damaged inventories and impairment of fixed assets in the existing damaged factory at Ayutthaya, pending insurance settlement.

I think it makes a real difference for a company like Adampak with a large cash reserve. The company can afford to simply spend the money first on a new factory and bring it to speed soon, pending claiming back from insurance what has been lost on the damaged factory.

According to Dragon Year predictions, there will be more floods this year since it's the Water Dragon year. Chonburi is second to only Bangkok in economic output (from Wiki) and it provided shelter to people from recent flooding (http://www.pattayamail.com/news/over-10-...elter-7283). This shows that the area more protected than the flood-prone areas. Bodes well for Adampak and seems like they have chosen the right area.

Adampak's share price hit $0.29 this morning!

On 23Jan12, Adampak's smaller HDD customer Western Digital released its Q2 (ended 30Dec11) results.....
http://www.wdc.com/en/company/pressroom/...4c5346606c}
http://seekingalpha.com/article/321479-w...urce=yahoo [Earnings Call Transcript]
, which beat Wall Street's forecasts and led to a 7.7% advance - to USD37.40 (closing price on 25Jan12) - in Western Digital's share price since 23Jan12.

Adampak's larger HDD customer Seagate is due to report its Q2 results on 31Jan12.

(26-01-2012, 10:51 AM)dydx Wrote: Adampak's share price hit $0.29 this morning!

dydx, may I ask humbly why do get excited when prices rise? If it's a quality business, wouldn't it be better for prices to fall so that you can accumulate more at a cheaper price?

(26-01-2012, 06:12 PM)FFNow Wrote:

(26-01-2012, 10:51 AM)dydx Wrote: Adampak's share price hit $0.29 this morning!

dydx, may I ask humbly why do get excited when prices rise? If it's a quality business, wouldn't it be better for prices to fall so that you can accumulate more at a cheaper price?

As a shareholder, I am just happy to see and note Adampak's share price - which has been on an 'up' trend recently, since Mr Market heard winds about Mr Anthony Tay stepping down from ED to now non-ED - going up further. Would Adampak's share price fall? May be, but it doesn't look like it - especially when the FY11 full-year results and the usual Final dividend (last FY10: $0.02/share) are just round the corner!

Adampak's larger HDD customer Seagate has reported a set of positive Q2 results.....
http://www.seagate.com/docs/pdf/corporat...ncials.pdf
http://www.seagate.com/docs/pdf/corporat...entary.pdf
http://www.seagate.com/docs/pdf/corporat...2_2012.pdf

Clearly, profit wise, Seagate has benefitted from the Thai floods in Oct/Nov11, by raising selling prices and keeping its production humming despite parts shortage and disruption in the global supply chain.

Following a very sharp rise in the share prices of both Seagate (+20.8%) and Western Digital (+4.6%) overnight (1Feb12).....
http://finance.yahoo.com/echarts?s=STX+I...=undefined; [Seagate]
http://finance.yahoo.com/echarts?s=WDC+I...=undefined; [Western Digital]

Adampak's share price also rose today (2Feb12), by $0.02 or 5.26%, to close at $0.30.....
http://finance.yahoo.com/echarts?s=5EZ.S...=undefined; [Adampak]
Great!

Profit guidance for the fourth quarter ended 31 December 2011

The Board of Directors of Adampak Limited (the “Group”) wishes to issue a profit guidance following a preliminary assessment of the unaudited financial results for the fourth quarter ended 31 December 2011 (“4Q2011”).

The Group expects to report a small loss for 4Q2011 due to impairment charges and operational losses arising from the flood in Thailand as announced on 13 October 2011 and 13 January 2012. Excluding these items, the Group would have been profitable in 4Q2011.

The Group also would like to advise that the impairment losses on inventories and fixed assets have been revised upwards to US$1.7 million after taking into consideration consolidation adjustments.

Further details of the Group’s performance for 4Q2011 will be disclosed in the announcement of its unaudited financial results on or before 29 February 2012.

Vested