Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Tungtex (Holdings) Company Limited operates as an investment holding company, primarily engaged in the global garment industry. Its operations span the manufacturing, distribution, retail, and international trade of apparel, reaching markets across North America, Asia, and Europe. The firm's extensive product offerings include ladies' sportswear, casual wear, and tailored suit pieces, along with a wide array of women's professional and casual attire. These items are supplied to a diverse clientele, encompassing major department stores, chain retailers, specialized boutiques, catalog operations, and exclusive designer brands. Their garments are crafted from various materials such as silk blends, linen, cotton, and synthetic fabrics. Beyond textiles, the company also engages in property investment. By March 31, 2022, Tungtex oversaw a retail footprint of 177 Betu-brand outlets in China. The company was established in 1977, with its main office located in Kwun Tong, Hong Kong.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is neutral on EV/EBITDA, underpriced on P/