Asia PaperTec Inc. (South Korea)

Biz revenue grew in view of corrugated cardboard demand increase, arising from solid growth trend in the forward industry, door-to-door industry, along with consumer sentiment improvement, deriving from economic recovery. Operating and net profit ratios fell on previous year, because of cost burden expansion, arising from price hike of scrap paper and pulp price, and firm's earning structure shows weak state. Due to reduction of debt burden, according to debt repayment, firm's various stability indicators improved on previous year, and the firm maintains excellent financial structure thru low debt level and adequate equity capital. Biz revenue is forecast to grow, boosted by solid consumption increase, deriving from continued economic recovery, and growth of door-to-door delivery biz, stemming from e-commerce activation. Firm's operating profitability improvement is likely limited, in view of strong trend of scrap paper prices (main raw material). In the oligopolistic corrugated cardboard market comprised of five affiliates, the firm belongs to Asian paper manufacturing affiliate, which is No.1 company in market share, and thus, current level of stable biz is forecast to be maintained.