Risk factor
Very high price volatility
Profitability factor
Undervalued vs peers
About
CPM Group Limited, an investment holding firm established in 1932 and headquartered in Wan Chai, Hong Kong, focuses on the production and distribution of an extensive array of paint and coating solutions throughout Hong Kong and Mainland China. Its product portfolio encompasses industrial coatings designed for applications such as furniture finishing, manufacturing processes, and material surface treatments, serving a client base that includes manufacturers, property and infrastructure renovation contractors, and even individual households. Additionally, the company provides architectural paints suitable for internal surfaces like walls and floors, as well as external building elements. Complementing these, CPM Group offers general-purpose paints and a suite of related items such as thinners, enamels, anti-mold agents, and solvent agents, applicable across both architectural and industrial domains. The company operates as a subsidiary of CNT Enterprises Limited.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. In particular, the stock is 'expensive' on EV/EBITDA, undervalued on P/FC.