Posted by observatory > 2021-11-06 11:45 | Report Abuse

Thank you for another very well written piece with detailed analysis and a lot of useful information.

Comparing Public Packaging against its peer Master Pack, and Muda Holding (which also has paper mill operation), PPHB appear to to have lower valuation at ~5X historical PE versus ~7X for the other two. This is despite past 10 year record showing Public Packaging managed to achieve better ROE and net margin.

I wonder whether it has to do with Public Packaging poor dividend records. Unlike its peers it has not paid dividends for almost 10 years before some token of appreciation recently. My view is given its ROE is just about matching cost of equity, a good manager would have returned a higher percentage of earning to shareholders.

Any thought on the comparison across there few corrugated packaging companies, and also comparison across flexible plastic packaging companies (besides the sustainability issue)?

Posted by gregorythe2 > 2021-11-12 16:33 | Report Abuse

I haven't looked at other packaging companies, my method is to find the most stable, long term growth stories. Very basic, but if I can find a 30-year stock chart that just goes from bottom left to top right, I look hard at the company.
I will be sure to post if I look more deeply at the packaging industry, but right now I'm not certain of PPAsia's specific advantage. Definitely a worthwhile area of future study.