Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Operating worldwide under its 'King Net' brand, King Chou Marine Technology Co., Ltd. specializes in the manufacturing, processing, global distribution, and procurement of fishing nets for the maritime industry. Their extensive product range features a comprehensive assortment of fishing nets, including purse seine, trawl, Danish seine, gill and trammel, trap, and set nets. The company further supplies long lines, various twines, and rope products. In addition to netting, King Chou offers a broad selection of marine hardware, such as cable clamps, purse rings, snap rings, steel triangles, choker hooks, alloy galvanized connecting links, robust C-rings, ring scoopers, splice needles, Samson splicing kits, chains, floats, swivels, and hooks. For aquaculture purposes, they provide specialized fish farming and cage nets. Their net offerings also extend to other applications, encompassing safety, decorative (flower), camouflage, and melon nets. Beyond marine uses, the company manufactures various sports nets for activities like soccer, volleyball, baseball, and tennis. Founded in Kaohsiung, Taiwan, in 1973, the enterprise was originally known as King Chou Fish Net Mfg. Co., Ltd. before changing its name to King Chou Marine Technology Co., Ltd. in July 2002.
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