China Aluminum Can Holdings Comes with Corporate Governance Risks

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

<p><a href="https://www.smartkarma.com/entities/4097" target="_blank" data-smartkarma-citation="entities:4097:1">Alucon Public Co Ltd (ALUCON TB)</a> is the leading aluminum impact extruded packaging and aluminum slug manufacturer in Asia. It operates in industries with no barriers to entry, high bargaining power of customers, and high threat of substitution. Additionally, the company’s profitability is dependent on a number of outside factors creating cyclicality in earnings. Despite the previously mentioned concerns, the company has an operational efficiency advantage over its peers allowing Alucon to generate excess returns.</p><p>In 2016, the company generated record profitability as many outside factors aligned. The market’s focus on current earnings bid up the company’s share price creating valuation risk. If the company's share price would fall below THB160, valuation is less of a concern.</p>

Alucon Public Co Ltd (ALUCON TB) is the leading aluminum impact extruded packaging and aluminum slug manufacturer in Asia. It operates in industries with no barriers to entry, high bargaining power of customers, and high threat of substitution. Additionally, the company’s profitability is dependent on a number of outside factors creating cyclicality in earnings. Despite the previously mentioned concerns, the company has an operational efficiency advantage over its peers allowing Alucon to generate excess returns.In 2016, the company generated record profitability as many outside factors aligned. The market’s focus on current earnings bid up the company’s share price creating valuation risk. If the company's share price would fall below THB160, valuation is less of a concern.

WATCHLIST- Alucon PCL- An Operationally Efficient Packaging Company