Adampak

[dydx]

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.

The above basically offers 2 new pieces of info:
1. Adampak's Thai plant suffered operational losess during and after the Thai flood which striked in Oct/Nov11. This is fully understandable, as Adampak had to continue paying salaries to the workers there, and spend on additional resources to protect the plant and workers, even with stoppage of production.
2. The impairment losses on inventories and fixed assets in the Thai plant have been revised upwards to US$1.7m (from the earlier announced approx. US$1.4m) after taking into consideration
consolidation adjustments, likely due to timing differences or forex movements.

What this means is that excluding the US$1.7m impairment losses on inventories and fixed assets related to the Thai plant and Thai flood, Adampak group wise excluding the Thai plant remained nicely profitable to the tune of approx. US$1.7m in Q4.

A relevant question arising from the expected small loss in Q4 is whether Adampak would cut the usual Final dividend, from last FY10's $0.02/share?

Based on Adampak's huge cash reserve which amounted to US$13.01m as at 30Sep11.....
http://info.sgx.com/webcoranncatth.nsf/V...80031310F/$file/Adampak_Result_Q3_2011_14Nov2011_final.pdf?openelement
the company has ample financial resourses to pay for a new plant in Thailand pending receipt of insurance settlement on the losses related to the Thai flood, as well as to reward shareholders with the usual Final dvidend.

[pianist]

S&P report said
Although the company continues to diversify its customer base,
Adampak’s revenue is primarily driven by the HDD market. If the
demand for tablets increases at the expense of notebooks/netbooks,
we believe that the HDD suppliers (including Adampak) may suffer
financially due to a lower demand for the HDD products.
 Additionally, Adampak is dependent on suppliers of raw materials that
are usually specified by customers. The group buys the bulk of its
adhesives from 3M, which is a global leader in that area.

[dydx]

We should read the latest S&P report (dated 14Feb12) in its entirety.....
http://research.sgx.com/reports/rpt_view.pl?id=6665

I wonder how old or experienced is the S&P analyst - Apurva Patel - who wrote the report, and whether he has grown his personal wealth through stock investment?

[RBM]

I will place my personal two dollars bet on .....

a. the said Apurva is somewhat younger in years than me, and
b. no, young Aperva has not grown his personal wealth thru stock investment.

Not vested,
in either Adampack or any of the businesses in Apurva's sprawling corporate empire,

Mud-in-yer-eye,
RBM

[Bibi]

He must be a joker to suggest Tablets increase at expense of labtop/pc. Tablets cannot replace a labtop or pc. The threat should be labtop increasingly are using fdd instead of hdd.

[Drizzt]

the majority of the laptop role in social surfing can be taken over by tablets. if u are a person that does 3G social and surfing u would rather grab something like the ASUS transformer.

the final frontier is when human computer interaction can allow excel to be done well on tablets.

[Bibi]

yes i agree. When i surf net, i use my tablet. But when i need to do work, i use my labtop. It is impossible for a person to own only a tablet without a labtop/pc at home. U may see Insurance agents use tablets for presentation, but 100% i am sure they have a labtop/pc at home. What i notice is several labtops are now using flash disk and not HDD, this will have an impact on Adampak.

[hkl]

Seagate and Western Digital are in the SSD scene as well, whether or not the SSDs need the same components that Adampak is producing for HDDs now is something I don't know.

Here's a website that has some gd research explaining SSDs.

http://www.storagesearch.com/ssd-top10.html

[Drizzt]

yes i agree. When i surf net, i use my tablet. But when i need to do work, i use my labtop. It is impossible for a person to own only a tablet without a labtop/pc at home. U may see Insurance agents use tablets for presentation, but 100% i am sure they have a labtop/pc at home. What i notice is several labtops are now using flash disk and not HDD, this will have an impact on Adampak.

the reason is that for power work (1-2 hour of excel review, note entries, word document drafting) requires good imput. mind u, you can always attach a bluetooth keyboard to it.

the problem lies with microsoft, or that no one came up with solution to kill microsoft or let people easily port that over.

---

Seagate and Western Digital are in the SSD scene as well, whether or not the SSDs need the same components that Adampak is producing for HDDs now is something I don't know.

Here's a website that has some gd research explaining SSDs.

http://www.storagesearch.com/ssd-top10.html

my feel is that the nature of these labelling is such that if u are samsung or san disk, you will have your existing provider. why change it?

what worked for adampak to protect them is limiting them i feel.

[Some-one]

Not sure how many of you have read this part. It states that either SSD or the normal HDD would not affect Adampak. I thought there are some truth in it since both type of HDD would still require labeling....

DJ MARKET TALK: Singapore HDD-Suppliers Set For Recovery - DMG

Dow Jones Newswires | 10 Feb 2012 3:15pm

0716 GMT [Dow Jones] STOCK CALL: Singapore HDD-component suppliers' outlook has passed the inflection point on signs of a faster-than-expected Thai-flood recovery amid strong demand from emerging economies and rising HDD prices, DMG & Partners says. It expects Singapore suppliers to benefit from a likely higher market share. It tips Broadway Industrial (B69.SG) as its top sector pick on a broadened customer base and attractive valuation multiples. It upgrades Broadway to Buy, raising its target to S$0.48 from S$0.30. It forecasts a major turnaround starting 1Q12 as the company ramped up China production, capturing the immediate demand generated from the severe component shortage. The house raises Adampak (5EZ.SG) target to S$0.36 from S$0.31, noting it is the only HDD player which will see demand growth regardless of which HDD technology dominates the storage industry; it keeps a Buy call. The house upgrades Armstrong Industrial (A14.SG) to Buy, raising its target to S$0.37 from S$0.195, noting its Thailand restoration work is ahead of schedule. (leslie.shaffer@dowjones.com)