APAC Paper Packaging Industry Report H1 2020


APAC Paper Packaging Industry Report H1 2020

Published on 29 October 2020


We are pleased to share with you a summary update of market valuations and activities in the Asia Pacific paper packaging industry for the first half of 2020.

Paper packaging is one of the key sectors which Armor specializes in and closely follows market trends. Please contact us for further discussions.

Valuations of Asia Pacific’s public companies have lowered slightly in the first quarter of 2020 compared to the same period in 2019, but bounced back in the second quarter.

Based on 200-300 constituent companies, the table above reflects that industry margins have been on a downtrend from its peak in 2018 (latest net income margin is 1.9% vs 3.5% in 2018). Over the same period, leverage of the industry constituents has increased and profitability has decreased.

Most of the paper packaging industry deals in the reported period were in the lower mid market segment (except Q2-2020 and Q1-2019 in which data were unavailable). The transaction values in Q4-2019 and Q2-2019. were pushed upwards by one large deal in each respective quarter. Overall, deal activity was down in the first half of 2020.

Armor selected the largest M&A transactions across the region in H1-2020 for which information on implied enterprise value was available. The largest transaction in the period was the acquisition of Tailim Packaging – a South Korean company which manufactures corrugated boxes – in which the total transaction value was USD 347m.

Source: S&P Capital IQ, Armor Capital Analysis

Paper packaging is one the key sectors in which Armor specializes and closely follows market trends.

Please contact us for an in-depth discussion via enquiry@armor-capital.com