Goodpack (GP) is engaged in the leasing out of patented multi-modal, returnable metal box system known as Intermediate Bulk Container(IBC, typically for businesses requiring transfer of bulk material such as TSR rubber, fruit juices (e.g. apple, pineapple juices) and non-hazardous chemicals.

IBCs offer users specific benefits such as a) cost savings from having to dispose of packing materials used for shipping, such as wooden pallets b) protection from contamination c) renting on a per use basis instead of owning containers

Synthetic rubber market is a key product market for GP's services. Global market size is 12m tons. GP has a 12% market share of this market. Market size for natural rubber is 7m tons, of which GP has captured a 50% market share.

GP has benefitted from trade-lane balancing of IBCs heading for US for the rubber product segment. Instead of having IBCs returned empty, 20%~30% of released IBCs were able to be further leased for transfers within US or to Europe.

GP has some 1.9m IBCs for leasing. Current plans are to add a further 50,000~100,000 IBCs by 2010. Longer term target is to have a fleet size of 2.5m IBCs by 2012

Growth is derived from a combination of new customers and new businesses. GP typically would raise IBC lease rates by 8% for new customers. Some 15%~20% of each year's revenue growth comes from mature new customers.

With the onset of the global financial crisis, IBC demand weakened in 3Q 2008. Topline growth slowed, with 3Q10 revenue down 6% yoy (due to lower demand from natural and synthetic rubber businesses) vs +11% yoy for 9M FY10.

Revenue CAGR for the last 3 years is 27%. GP's target is to grow revenue 20~25% each year.

Based on consensus forecasts, GP is trading at 9.7x FY09 P/E and 9.2x FY10 PE. Corresponding period P/B valuations are 1.6x and 1.4x respectively. GP's net gearing is 61%.