Risk factor
Very high price volatility
Profitability factor
Very poor margins and returns
About
Pelikan International Corporation Berhad, along with its affiliated companies, operates as a global manufacturer and distributor, specializing in a broad spectrum of products. These offerings span from writing instruments, art and hobby supplies, to various school and office stationery and paper goods. The company's reach extends throughout Malaysia, Germany, the wider European continent, the Americas, and other global territories. Its comprehensive product line features diverse writing implements, including pencils, highlighters, various markers, and a selection of pens such as fountain, ballpoint, rollerball, and fineliner types, complemented by necessary accessories. For artistic and crafting pursuits, Pelikan supplies colored pencils, paint sets, crayons, paints, modeling clays, specialized papers, and scissors. Essential office and school supplies like glue sticks, liquid adhesives, correctors, erasers, notebooks, compasses, and geometry sets are also part of its inventory. Additionally, the firm caters to professional settings with items like sealing waxes, wax markers, carbon paper, stamp pads, and stamp inks, alongside premium design and fine writing collections. Operating under the renowned Pelikan and Herlitz brands, the company leverages a robust distribution network that includes wholesalers, dealers, retailers, large supermarkets, educational institutions, and high-end luxury stores. Pelikan also extends its services to include logistics solutions. The corporation, headquartered in Shah Alam, Malaysia, was founded in 1980.
Company Valuation
From both historical and forecast perspectives, the stock is overpriced compared to similar stocks. In particular, the stock is overpriced on P/E, trading at neutral leve