Risk factor
Very high price volatility
Profitability factor
Very low or no dividends
About
Hong Seng Consolidated Berhad, an investment holding firm founded in Petaling Jaya, Malaysia, in 2001 (and known as MSCM Holdings Berhad until October 2020), conducts a diverse range of business operations primarily across Malaysia. The company's activities span several key segments, including healthcare, financial services, gloves, search and advertising, and various other ventures. Within its healthcare division, it delivers medical diagnostic, research, and genetic testing services, alongside the wholesale and retail of pharmaceutical, medical, and orthopedic products. Its financial services arm is involved in money lending. The group also engages in the manufacturing and global trade of rubber gloves. In the search and advertising sector, it creates online presence and advertising solutions, operates search platforms, publishes business directories, and provides content development and database marketing. Furthermore, Hong Seng's additional undertakings encompass software development, training, property investment, the construction and management of tank farm facilities for feedstock storage and associated logistics, and the production and trading of nitrile butadiene latex.
Company Valuation
Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. Specifically, the stock is undervalued on EV/EBITDA.