Risk factor
Very poor trading liquidity
Profitability factor
Greatly overvalued vs peers
About
Leform Berhad, a Malaysian company, specializes in the production and commercial distribution of a diverse range of steel products. Their extensive catalog features various steel pipes, including round, oval, ellipse, and hollow sections, alongside structural elements such as guardrails, gate channels, U-channels, and trolley tracks. They also supply raw steel materials like slitted coils and steel sheets. In addition to their core manufacturing activities, the company provides transport and delivery solutions. These steel offerings are crucial components in multiple sectors, notably furniture, construction, and industrial fabrication, serving specialized areas like automotive parts and telecommunication tower components. Leform Berhad caters to building material and steel trading companies, as well as various manufacturers and contractors, and extends its market reach through exports to New Zealand. Founded in 1995 and headquartered in Serendah, Malaysia, Leform Berhad operates as a subsidiary of Tianwen Holdings Sdn Bhd.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is 'expensive' on EV/EBITDA, overvalued on