Risk factor
Limited trading liquidity
Profitability factor
Very poor margins and returns
About
China General Plastics Corporation (CGPC) is a global manufacturer, distributor, and service provider specializing in a diverse array of vinyl products. Its operational reach extends across numerous continents, including Asia, North America (United States), Oceania, Europe, the Middle East, and Africa. The company's core activities are structured into two distinct business segments: Vinyl Chloride Monomer (VCM) Products and Polyvinyl Chloride (PVC) Products. CGPC's extensive portfolio encompasses both foundational raw materials and specialized fabrication items. A significant portion of its offerings includes PVC resins, which are vital for a wide range of applications such as injection and blow molding, the creation of rigid and shrinkable films through hollow vacuum forming, and the production of soft and semi-rigid goods. These resins also form the basis for rigid pipes, hoses, insulation for wires and cables, high-impact flexible products, high-impact sheets, and materials for high-voltage wiring. Furthermore, CGPC develops PVC compound products available in both soft and rigid formulations. For the construction industry, the company provides essential components like PVC pipes and fittings, waterproofing membranes, anti-corrosion liners, and various PVC wall/partition boards and panels. Its product line also extends to flexible, rigid, printed, and laminated films and sheets, alongside specialized films for furniture lamination. Additionally, CGPC produces synthetic leather products, widely utilized in diverse sectors such as footwear, furniture, marine environments, vehicles, sports equipment, and medical care applications, often featuring stain-resistant properties. Demonstrating a commitment to sustainability, the corporation also develops environmentally friendlier "green" materials, including the VERDOR GREEN leather/film, and the VERDA GREEN and POLYTEX GREEN leather lines. Established in 1964, China General Plastics Corporation maintains its corporate headquarters in Taipei, Taiwan.
Company Valuation
Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. In particular, the stock is 'expensive' on EV/EBITDA.
Target Price
The average target price of 1305.TW is 11.0 and suggests 6.78% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation t