WATCHLIST- Alucon PCL- An Operationally Efficient Packaging Company

Quality-Value Investing

Marc Melendez, CFA

Emerging Market Small and Mid Cap Equities

Reperio Capital

Reperio Capital Research was founded in 2013 with the goal of better serving the investment community with in-depth, high quality, value oriented research.

Reperio means to discover in latin. Using value investing principles, we aim to discover a minimum of 12 investment opportunities per year within the Emerging Markets Small and Mid Cap universe.

We take a business owners perspective with a long term investment horizon. We conduct bottom up, fundamental research. We focus on downside risks and require a significant margin of safety in any investment to prevent the permanent loss of capital. All factors differentiating our research from the short term, trading focus of traditional research providers.

Equity Bottom-Up

China Aluminum Cans Holdings / Equity Bottom-Up

<p>In my recent <a href="https://www.smartkarma.com/insights/watchlist-alucon-pcl-an-operationally-efficient-packaging-company" target="_blank">report </a>on <a href="https://www.smartkarma.com/entities/4097" target="_blank" data-smartkarma-citation="entities:4097:1">Alucon Public Co Ltd (ALUCON TB)</a>, one of its competitors, <a href="https://www.smartkarma.com/entities/1456" target="_blank" data-smartkarma-citation="entities:1456:1">China Aluminum Cans Holdings Ltd (6898 HK)</a>, (CAC), piqued my interest due to its low multiples and knowledge of its industry. Currently, CAC trades on an EV/EBITDA of 3.6 times, an EV/EBIT of 4.6 times, and an EV/IC of 1.5 times. Unfortunately, due to corporate governance issues, the company deserves its low multiples.</p><p>CAC’s primary shareholder is Mr. Lin Wan Tsang (Mr. Lin), owning 74% of the company's shares. Mr…</p>

In my recent report on Alucon Public Co Ltd (ALUCON TB), one of its competitors, China Aluminum Cans Holdings Ltd (6898 HK), (CAC), piqued my interest due to its low multiples and knowledge of its industry. Currently, CAC trades on an EV/EBITDA of 3.6 times, an EV/EBIT of 4.6 times, and an EV/IC of 1.5 times. Unfortunately, due to corporate governance issues, the company deserves its low multiples.CAC’s primary shareholder is Mr. Lin Wan Tsang (Mr. Lin), owning 74% of the company's shares. Mr…

China Aluminum Can Holdings Comes with Corporate Governance Risks