Daibochi Plastic & Packaging Industry Berhad (Bursa: DAIBOCI) is a classic example of finding an investment idea while grocery shopping in the supermarket. When you visit the supermarket, you will realise that many food products like your Cadbury chocolate bars and Milo sachets require packaging.
A company has to produce and manufacture all that packaging — and Daibochi is one of the leading flexible packaging manufacturers in Malaysia and Southeast Asia.
Here are five things I discovered about Daibochi Plastic & Packaging Industry Berhad:
1. Consistent growth in revenue and profit
Daibochi’s revenue has grown from RM71.9 million in 1999 to RM345 million in 2015.
Likewise, net profit has grown nearly fivefold from RM5.1 million in 1999 to RM23.4 million in 2015.
The growth is contributed from food manufacturers increasingly switching from rigid packaging to flexible packaging. Diabochi’s latest nine-month revenue and net profit for FY2016 are …