Joshua Kennedy 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.
Benjamin Koh also presented on Greatview Aseptic Packaging at Asian Investing Summit 2014.
About the instructor:
Joshua Kennedy is Managing Partner of Sonian Capital Management, a long/short global value manager based in Boston. He previously served as Portfolio Manager at Liberty Square Asset Management and began his career on the news staff of The Wall Street Journal. He holds a BA in Religious Studies from Brown University and an MBA with concentrations in accounting and finance from New York University’s Stern School of Business.
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