Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Pyung Hwa Industrial Co., Ltd., based in Daegu, South Korea, is a global manufacturer and supplier of rubber components for both the automotive industry and general industrial uses. Its diverse product offerings include comprehensive anti-vibration systems, featuring powertrain mounts, suspension and chassis parts, advanced vehicle components, and engine and engine belt systems. The company also provides essential rubber products for fuel, braking/steering, and air and cooling systems. Furthermore, Pyung Hwa Industrial produces specialized rubber items such as caterpillar and road wheel components for combat vehicles, in addition to other bespoke industrial rubber goods. Founded in 1950, the company functions as a subsidiary of Pyung Hwa Holdings Co., Ltd.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBIT