Strengths
- Good numbers and better than Brady’s (better NPM, ROE, ROA, div yield, lower PE than industry)
- Barriers to entry – stringent requirements; strong relationship with clients (Seagate, Maxtor, HP, WD) and clients want reliability; established track record
- Integrated capabilities and production facilities
- 70% repeat customers
- Management holds around 40% of company
- Experience of management – chartered company through many crises including the recent Thailand flood; would have experienced many challenges over the years and learnt from it
- Not much bargaining power of buyers/suppliers as Adampak has long-term relationship with clients and 3M (would know Adampak’s style)
- Heavy dependence on HDD sector (56% in FY2010. Out of this, 36.5% – die-cut parts)
- RFID
- Merger and acquisition – can acquire smaller companies and can also be acquired by bigger ...
