Kim Eng raises Goodpack target price

Kim Eng raises Goodpack target price to $1.94 from $1.65, maintains Buy rating. Expects Goodpack to get EBITDA of US$85-95 m with enlarged fleet of 2.5 m intermediate bulk containers (IBC). Also, steel, wood prices tripled since '01; upward steel price trend helped to shift demand from one-off steel drums to reusable IBCs. Notes, corporate restructuring at top management level has previous years of logistics experience from DHL which will free up management resources to source for more opportunities in new markets such as Japan, new products segments. "Divestment of fully-depreciated IBCs will yield handsome amount of US$22.5 m approximately; will buffer cash drain if its warrants are not converted."