China Oilfield Services Ltd 2883.HK

In my previous job, I worked as an offshore engineer for a multinational oil and gas company which is one of the ‘supermajors’. In public opinion, the oil and gas is a cash generating industry and working for that industry can earn decent money, which I do not deny.

When I first started, my manager pointed at a length of pipe which was producing a swoosh sound. He asked ‘What sound is that?’. For me, it is just gas flowing through. He said ‘That’s the sound of money!’. That facility is connected to 2 gas wells producing 2 million m3 of gas per day, equivalent to USD 500,000 per day. That is just producing through a 6 inch pipe, no larger that the length of my foot.

I have also worked with oilfield services, including one French services company. We worked for 24 hours non-stop for kicking off newly drilled wells, I provided permit for them to do well intervention and installation of equipment. I have also worked with rigs and vessels that charge USD 500,000 per day. I have also ordered equipment, the size of a 20-foot container, that was transported using air from Netherlands due to urgency for use. Boy! The oil and gas industry is a lucrative business.

Oilfield services charge a company for thousands on day rates for services and equipment prices are large inflated when they go offshore due to logistics. In this post, the feature company is China Oilfield Services Ltd (COSL), which is a China based offshore oilfield services company.

Disclosure: The author no not own shares in China Oilfield Services (2883.HK). This article is intended to provide educational information to readers and in no way constitutes investment advice. Investing in public securities is speculative and involves risk, including possible loss of principal. The reader of this article must determine whether or not any investments mentioned in this article are suitable for their portfolio, risk tolerance, and accepts responsibility for their decisions. Neither information nor any opinion expressed in this article constitutes a solicitation, an offer or a recommendation to buy, sell, or dispose of any investment or to provide any investment advice or service. An opinion in this article can change at any time without notice. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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Greatview Aseptic

Greatview Aseptic (GA) provides aseptic packaging material and is the second biggest roll-fed supplier globally for aseptic packaging. Its biggest customers consist of large dairy companies in China, including Mengniu and Yili. To complement its packaging business, it also sells filling machines, spare parts and technical services to the liquid food industry.

So what is aseptic packaging? TetraPak invented aseptic packaging as a means of storing perishable liquid in carton form in the 1950s. Initially, these are used for UHT milk, which can extend its life to six to twelve months. Its function slowly expanded into other products like sweetened drink, soup, and juices.

Recently, GA’s stock price has dropped from a high of HK$6/share to HK$4/share with no apparent reason in any company disclosure. Therefore, I decided to look at it. In addition to that, Jardine Strategic (Jardine) acquire 22.15% of GA’s share at HK$5/share on 2nd June 2017 and later Jardine acquired more to bring it to 28% got me interested.

The first encounter with GA’s packaging is when my friend went to Beijing and bought the popular yoghurt drink, in June 2017. And so, the flipping of milk cartons in supermarket started whenever I visit a new supermarket. As for as I remember, all the packaging are from TetraPak, however starting 2017, I have seen Greatview’s packaging in Australian packaged milk. In Singapore, we have seen Cowhead, Fairprice, and Farmhouse brands using GA’ packaging. In Hong Kong, Harvey Fresh and Mengniu brands in local supermarkets. I have also chance upon a non-dairy brand, TaoTi, a Taiwanese tea beverage in the 250 ml packs.

Please enjoy my adventures in flipping milk carton boxes.

The logo of GA found in packagings.Nov 2017 – FairPrice brand milk in SingaporeNov 2017 – Farmhouse brand milk in Singapore
Feb 2018 – Lemnos, Australian brand with GA packaging.Sept 2018 – Oolong tea, Tao Ti seen in HK.Sept 2018 – Mengniu brand milk.
Harvey Fresh, an Australian brand.
Cowhead brand, QAF Singapore


Mengniu drinking yoghurt in GA packaging in Beijing.

A more detailed analysis of the company in the PDF below.

Disclosure: The author own shares in Greatview Aseptic (0468.HK). This article is intended to provide educational information to readers and in no way constitutes investment advice. Investing in public securities is speculative and involves risk, including possible loss of principal. The reader of this article must determine whether or not any investments mentioned in this article are suitable for their portfolio, risk tolerance, and accepts responsibility for their decisions. Neither information nor any opinion expressed in this article constitutes a solicitation, an offer or a recommendation to buy, sell, or dispose of any investment or to provide any investment advice or service. An opinion in this article can change at any time without notice. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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