Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Founded in 1977 and headquartered in Wan Chai, Hong Kong, Golik Holdings Limited functions as an investment holding company with primary operations in the manufacturing and sale of a diverse range of metal products and essential building construction materials across Hong Kong and Mainland China. The company's production capabilities encompass various steel coil products, including cold rolled, electrolytic and hot-dip galvanized steel, aluminum, electrolytic tinplate, and non-oriented electrical steel. It also specializes in manufacturing ropes for elevators, cranes, and oilfield applications, as well as a comprehensive selection of steel wire products such as carbon steel spring, piano, and bedding/seating spring wires. Other wire offerings include fibre optic cable strength members, aluminum conductor steel reinforced products, galvanized low carbon steel wire for cable armouring, galvanized steel wire strands, steel wire strands for fibre optic cables, and zinc-coated steel strand supports for telecommunication cables. Beyond manufacturing, Golik actively distributes reinforcing steel bars, sheet piles, and H-beams, and provides a full suite of reinforcing steel solutions. These solutions include tailored and standard fabric reinforcements, cut and bent rebar, prefabricated large diameter bored pile cages, lattice girders, rebar couplers, Hy-Rib formworks, and diverse concreting accessories. The company further supplies construction-grade metal products like expanded metal meshes, beads and laths, lintels, and corrugated sheets. A significant contributor to the construction industry, Golik produces and supplies ready-mixed concrete, supported by its network of decoiling centers and concrete batching plants. In addition to these core activities, the company offers reinforcing mesh, warehousing and handling services, and is involved in property holding and money lending.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD