Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Chugokukogyo Co.,Ltd. is a Japanese firm that manufactures and supplies a range of high-voltage components, steel structures, and various industrial equipment. The company's offerings include a complete line of liquefied petroleum gas (LPG) products such as containers, storage tanks, bulk storage units, and gas cylinders. Additionally, it provides specialized services for LPG plants, encompassing their design, construction, and inspection. Chugokukogyo also fabricates diverse steel structural products, prominently including inner covers for annealing furnaces. Furthermore, the company is a notable producer of fiber-reinforced plastic (FRP) items like animal feed tanks, silage silos, pharmaceutical tanks and their corresponding covers, automotive parts, and vehicle wash basins. For the agricultural industry, their solutions comprise livestock products such as wet feeders and pipe barns, along with BM deodorizers and advanced wastewater treatment systems for livestock. The company, established in 1950, maintains its headquarters in Kure, Japan.
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