Adampak

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#11
wow... Adampak seems to be heading up these few days... it's at 31.5 with a high of 32 cents ! Smile

happy investor here Smile
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#12
Since as a very high-quality company Adampak should continue to appeal to serious, well-funded investors with a longer-term perspective, and since this counter appears already tightly held, it is conceivable that when the right positive catalyst event emerges, the re-rating of the share price towards its fair value may well be an effortless climb.
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#13
Found this interesting news article. Feels good that Adampak is recognized by its customers too...

Celestica Recognizes Suppliers With Its 2009 TCOO Supplier Awards

17 June 2010

Celestica Inc announced the winners of its 2009 Total Cost of Ownership (TCOO) Supplier Awards. The awards honor suppliers who support Celestica's approach to supply chain management and provide the best TCOO performance to Celestica and its customers by demonstrating excellence in quality, delivery, technology, service, pricing and flexibility.

The 2009 TCOO Supplier Award recipients:

Best TCOO Score Award: Samtec Inc
Best Ring Score Award: Fairchild Semiconductor International Inc
Most Improved TCOO Score: WPG Electronics
Innovative Award: Indium Corporation
Execution Award: ON Semiconductor
Flexibility Award: ACME Alliance Asia Ltd
Best Indirect Services Award: InterCall Inc
Most Technical Compliant Award: Rakon Ltd

Best Regional TCOO Score

o Americas: XPEDX Division of International Paper
o Asia: Adampak Limited
o Europe: Z Studio spol sro

In addition, Celestica recognized the following honorees who made a significant contribution to its supply chain goals in 2009:

TCOO Score Award category: Viasystems Group Inc and Daishinku Corp
Ring Score Award category: Molex Incorporated, Tyco Electronics Ltd
Improved TCOO Score Award category: Omron Electronic, Mechanical Components Company and WUS Printed Circuit (Kunshan) Co Ltd
Technical Compliance Award category: Gold Circuit Electronics Ltd and Walsin Technology Corporation

This marks the fourth year of Celestica's TCOO Supplier Awards program, which evaluates and recognizes the top performers in Celestica's global network of over 3,000 suppliers. Celestica's TCOO system is focused on evaluating supplier performance by measuring the total cost to produce, deliver and support products and services beyond the supplier invoice price.

"Delivering the lowest total cost to our customers and enabling a supply chain that drives speed, flexibility and responsiveness is one of the highest priorities at Celestica," said Harvinder Sembhi, Chief Procurement Officer, Celestica. "We are proud to partner with suppliers who share our passion in achieving this objective and I am pleased to congratulate the winners of the 2009 TCOO Supplier Awards. I would also like to thank the award recipients and honourees for their ongoing commitment to our supply chain strategy."

www.celestica.com

"You are right not because the world agrees or disagrees with you, rather you are right because your facts & reasoning are right."
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#14
Thanks for sharing SGmystique!
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#15
(06-10-2010, 03:49 PM)sgmystique Wrote: Best Regional TCOO Score

o Americas: XPEDX Division of International Paper
o Asia: Adampak Limited
o Europe: Z Studio spol sro

I think it is really quite amazing that Adampak is the champion in Asia for Celestica's 2009 TCOO Supplier Awards. I would have thought such an award should have gone to a bigger company or a supplier of bigger parts or sub-systems. Instead, it has gone to Adampak - a label and die-cut part converter!

I think it is also noteworthy that as a price-competitive as well as overall competitive parts supplier - a key criterion to winning Celestica's TCOO Supplier Awards - Adampak is still able to deliver above-average profitability on a consistent basis. Solid management!!
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#16
(27-09-2010, 12:00 PM)dydx Wrote:
(27-09-2010, 08:51 AM)kazukirai Wrote: One question, it seems like the USD will go the way of the pound (i.e. depreciation relative to other currencies). How do you think this will impact Adampak? And what are the possible ways management could mitigate this?

Based on past track records, depreciation of the USD had only a mild negative impact on Adampak's P&L. The reasons are as follows:

1. A substantial portion of Adampak's USD-denominated revenue is hedged naturally by its majority regular USD-donominated raw material purchases, and less regular capex on acquisition of new production machinery.

2. Adampak has rationally chosen its main functional currency USD as its reporting currency, and this has served to reduce unnecessary translational forex impacts on its B/S and P&L, especially in relation to USD-denominated monetary items on its B/S.

3. Adampak is naturally long in USD, as a major portion of the group's revenue is denominated in USD. Adampak's main forex exposures are in currencies (SGD, CNY, THB, and MYR) of countries where the group has manufacturing facilities, mainly related to recurrent local operating expenses. The biggest item is SGD, as it involves headquaters' expenses, directors' performance-linked incentive payments, and the twice-a-year dividend payments to shareholders. These local-currency payment related forex exposures are partially and naturally hedged by local sales in the respective countries denominated in the same local currencies - e.g. sale of labels to FairPrice in Singapore, etc. I suppose Adampak will meet any shortfall related to such local currency payments by selling in advance its surplus USD for such currencies, or by short-term borrowings in such currencies.

I was a little concerned before on Adampak's USD exposure. Having understood the above, nowadays I don't lose any sleep on it at all!

I work in IT sector and a bit pessimistic of their prospect, but indeed this is an interesting company.
However, it is quite complicated hedging there.
Do they expose the segmentation of revenue based on currency?
Will be interesting to find out the proportion of USD and Non USD revenue.
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#17
Just wonder what would be the implications for Adampak...

Seagate misses estimates, declines to give outlook
http://sg.finance.yahoo.com/news/Seagate...2.html?x=0

The interesting part is that Revenue rose to $2.7 billion in the fiscal first quarter, which ended on Oct. 1. That compares to $2.66 billion a year ago, and was slightly below expectations of $2.72 billion, according to Thomson Reuters I/B/E/S.

Seagate, the world's largest maker of hard-disk drives by revenue, said net income fell to $149 million, or 31 cents per diluted share, from $179 million, or 35 cents per diluted share, a year earlier.

Excluding items, the company reported earnings of 37 cents a share. Analysts expected EPS of 45 cents, according to Thomson Reuters I/B/E/S.

Seagate reported a gross margin of 20.4 percent as pricing remains tough. That was lower than its previous guidance for this year of 22 percent to 26 percent.


"You are right not because the world agrees or disagrees with you, rather you are right because your facts & reasoning are right."
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#18
Adampak sells labels and die-cut components for HDDs right? Which means the HDD industry's impact on Adampak will be the units sold rather than Seagate's earnings.

In that case, shouldn't we look at units sold by Seagate (proxy being Core Earnings instead of Seagate's earnings? If so, it actually returned the 4th best quarter in terms of units sold over the last 16 quarters and some 2.6m units more on a q.o.q and y.o.y basis. (link here)

Note: Seagate has also been moving into NAND flash drives (not sure if these require the labels or die cut comps that Adampak supplies) so Seagate has sold more units but I'm not sure what this breakdown is like. It doesn't clearly say whether more HDDs are being sold or not.

Anyone else can bring more clarity to the issue? Anyhow, I don't think Adampak will be affected by Seagate's bad qtr in the short run.
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#19
I tend to agree with kazukirai's view here. Quite clearly, it is not Seagate's quaterly or annual profits that contribute to Adampak's business volume, revenue growth, and profits. It is more Seagate's HDD production volume in units, and the design and complexity of Seagate's HDDs, which determine the types and numbers of labels and die-cut parts required, and ordered from and supplied by Adampak. On the other hand, it also depends on Adampak's ability to compete for and service Seagate's business orders and requirements which grow and change over time. In this aspect, Adampak has a proven track record, not just with Seagate, but also with other HDD producers (like Western Digital) and large non-HDD electronics OEMs like HP and Sony.

It is also relevant to note that while likely Seagate will remain as Adampak's largest customer contributing approx. 20% of total revenue, there are many other prime-name OEMs/companies in Adampak's customer portfolio. Over time, the business volume from some of them may well grow to become as important as that from Seagate now.

Financially, Seagate and Western Digital are rock-solid companies. It is a boon to Adampak to have them as long-standing customers, and become one of their 1st-tier parts suppliers at a regional level.
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#20
Few days ago I read an article in MyPaper which say apple iPad causes big drop into pc/laptop sales. This I believe will have an impact on hdd industry. Today I found out that apple launch a new laptop MacAir which uses flash disk. Hdd and it's related manufacturers are going to have tough times ahead. Sonnet or later I believe all pc and laptop will come with flash drive and users who wants more capacity will go for external hdd.
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