Benjamin Koh presented his in-depth investment thesis on Greatview Aseptic Packaging (Hong Kong: 468) at Asian Investing Summit 2014.
Greatview Aseptic Packaging: Chinese-based manufacturer of aseptic packaging material threatening to break the decades-old TetraPak monopoly worldwide (having already succeeded in China). Certain unique success factors enabled Greatview to become a formidable competitor to TetraPak in China: 1) a market for aseptic packaging to arise where even small share meant large scale; 2) a cost advantage such that predatory pricing was less effective; 3) trade regulators intolerant of a foreign company dominating an important consumer category; 4) dairy customers willing to take a chance on a Chinese second supplier. Furthermore, the management (previously the senior management team of Tetra Pak in China) had the necessary technical expertise. With the Chinese dairy market growing 5-10% p.a., Greatview likely to capture unfair share of the incremental demand (Greatviews’ current market share in China is ~15% versus TetraPak’s ~70%). Given the growth prospects and high entry barriers, valuation at 15x trailing earnings (12.5x 2014 estimates) is attractive for this compounder.
Joshua Kennedy also presented on Greatview Aseptic Packaging at Asian Investing Summit 2014.
About the instructor:
Benjamin Koh is Founder and Portfolio Manager of Lighthouse Advisors. Lighthouse is a Singapore-based registered fund manager that invests in publicly traded securities in Asia. The investment philosophy is bottom-up and value-driven. Prior to setting up Lighthouse Advisors in 2008, Benjamin worked at APS Asset Management Pte Ltd, and before that the Economic Development Board of Singapore. Benjamin has been investing in the stock markets since 2002. During 2005-2007 he also helped to manage a venture capital fund. Benjamin holds a Bachelor of Science in Chemical Engineering, and a Bachelor of Arts in German Studies. Both degrees were awarded in 2002 at Stanford University, California, USA.
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