Risk factor
High price volatility
Profitability factor
Greatly overvalued vs peers
About
Chung Hwa Chemical Industrial Works, Ltd. engages in the manufacture and sale of chemical products in Taiwan and internationally. The company provides basic chemicals, including acids, alkalis, and phosphates for use in water treatment, detergent, papermaking, textiles, PCB, etc.; and specialty chemicals, such as reactive UV absorbers, polymer additives, sulfonated monomers, catalysts, thermal paper materials, and surface active agents for dyes, plastics, chemical textiles, IC wafers, display panels, electronics, photoelectric markets, etc. It also offers electronic chemicals, which include Saint-Gobain process fluid systems that are used in etching liquid cleaning in electronics industry and liquid transport equipment in electronic factories; and water treatment and biomass chemicals. The company was founded in 1956 and is based in Taoyuan City, Taiwan.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBI
