Adampak

[freedom]

my thought is that the company can survive and has good GPM & NPM (besides good management), mostly because big players are not interested in this particular market which is too small for them. business situation like micro-mechanics.

[FFNow]

It seems to me there are too many competitors in this industry and it's a very fragmented market. Is it true?

[dydx]

taka666,
To understand what Adampak produces, you can visit the company's website.....
http://www.adampak.com.sg/Products/Index.htm

To have answers for your questions, you can give Financial PR (Adampak's external investor relations manager) a call at 6438-2990, and talk to Kamal (the advisor-in-charge), who should be able to help you along.

You may like to request for a visit to Adampak's Singapore HQ and have a chat with CEO Mr Chua Cheng Song. Kamal should be able to help in arranging the meeting. If there are other forumers interested, Kamal may even be able to arrange Adampak to do a group presentation, similar to their quarterly result briefings for the stock analysts and fund managers.

[kazukirai]

To have answers for your questions, you can give Financial PR (Adampak's external investor relations manager) a call at 6438-2990, and talk to Kamal (the advisor-in-charge), who should be able to help you along.

You may like to request for a visit to Adampak's Singapore HQ and have a chat with CEO Mr Chua Cheng Song. Kamal should be able to help in arranging the meeting. If there are other forumers interested, Kamal may even be able to arrange Adampak to do a group presentation, similar to their quarterly result briefings for the stock analysts and fund managers.

This sounds great. We could organise a VB forum one if there is enough interest. I'd be happy to make arrangements.

Let me just contribute more to the discussion on Adampak (which I wanted to ever since their results but never got down to)

Adampak posted pretty strong results for FY10. Besides the record Net Profits (~ USD9.3 mil) and Op Cash flow (~ USD9.3 mil), it's the other metrics that are also strong.

ROE: 21% (5 yr avg ROE: 20%)
Gross Margins: 33%
Net Margin: 15% (5 yr net margins: 14%)

Remember that Adampak is a company that is net cash. This means that their more than decent ROE is not due to excessive leverage. Margins have also not been compromised and neither has inventory or receivables turn (these have largely been constant, receivables turn have improved slightly actually).

For those wondering about the industry (how competitive it is, whether the products they supply are in danger of becoming obsolete in the near-term etc.), I would reccomend reading Joe Ong's posts (here). His interview with the CEO Mr Chua is quite thorough.

The important thing of course is the valuation.

Adampak is going at 7.4x current yr earnings but 9.8X 10 yr earnings. Will Mr Market attach a much higher valuation to Adampak? I can't say. All I would say is that I think that Adampak at this price would mean an investor is placing more hope on the future than safety in the present.

[pianist]

maybe u can attend buy a small lot for a start and attend the AGM - also a good avenue to get the queries solved, in addition, u can attend the usual presentation briefing make to financial analysts usually after its full year results..

[FFNow]

taka666,
To understand what Adampak produces, you can visit the company's website.....
http://www.adampak.com.sg/Products/Index.htm

To have answers for your questions, you can give Financial PR (Adampak's external investor relations manager) a call at 6438-2990, and talk to Kamal (the advisor-in-charge), who should be able to help you along.

You may like to request for a visit to Adampak's Singapore HQ and have a chat with CEO Mr Chua Cheng Song. Kamal should be able to help in arranging the meeting. If there are other forumers interested, Kamal may even be able to arrange Adampak to do a group presentation, similar to their quarterly result briefings for the stock analysts and fund managers.

Will Kamal and the CEO entertain such a small fry like me who will only buy a few lots?

[FFNow]

This sounds great. We could organise a VB forum one if there is enough interest. I'd be happy to make arrangements.

kazukirai, I'm in for this. Anyone else is interested?

pianist, I don't want to buy one or two lots just to attend AGM. I want to buy only when I like the company. Moreover, I can't attend AGMs usually as I can't get time-off from work. Only can do so if the meetings are on Sat but Sat AGMs are very rare.

[sgmystique]

This sounds great. We could organise a VB forum one if there is enough interest. I'd be happy to make arrangements.

I have been vested in Adampak for quiet some time. Meeting up with management would be great. Do count me in.

[dydx]

Remember that Adampak is a company that is net cash. This means that their more than decent ROE is not due to excessive leverage. Margins have also not been compromised and neither has inventory or receivables turn (these have largely been constant, receivables turn have improved slightly actually).

For those wondering about the industry (how competitive it is, whether the products they supply are in danger of becoming obsolete in the near-term etc.), I would reccomend reading Joe Ong's posts (here). His interview with the CEO Mr Chua is quite thorough.

Adampak's perennial net cash position is actually quite 'acute', considering the company provides quite generous trade credit terms (average A/R period: 3 months) to its blue-chip customers, and pays suppliers early or promptly (average A/P period: 1.5 months). If we take out the excess cash/capital from the B/S, Adampak's adjusted 'normalized' ROE is actually in excess of 30%p.a.

Indeed, Joe Ong has delved very deeply into Adampak's business operations and discovered many intricate and important points. I have just read his report again in detail and still found it refreshingly revealing!

[FFNow]

How to obtain Zephyr's annual report from ACRA website as mentioned by Joe in his blog? Anyone knows? I can't seem to search for private company annual reports.