Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
Heng Hup Holdings Limited, an investment conglomerate, primarily engages in the trade of ferrous scrap metal, operating both domestically within Malaysia and across international markets. The company procures these metallic discards from diverse suppliers, subsequently processing and distributing them to steel manufacturing facilities. Beyond ferrous metals, its commercial operations extend to include used batteries, waste paper, and other assorted scrap materials. Furthermore, the firm is active in the rerolling, refinement, and merchandising of scrap metal. It also handles recycled paper and related products, and provides an e-commerce platform for waste commodities. Its customer base includes not only steel mills but also lead smelting facilities and paper production plants. Established in 1996, the company's main office is situated in Shah Alam, Malaysia. Heng Hup Holdings Limited operates as a subsidiary under the ownership of 5S Holdings (BVI) Limited.
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