Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
As an investment holding company, Thong Guan Industries Berhad specializes in the manufacturing and distribution of plastic goods, alongside packaged food, beverages, and other consumer products. The firm's activities are structured into two distinct operating divisions: 'Plastic Products' and 'Food, Beverages and Other Consumable Products'. Within its extensive plastic portfolio, Thong Guan produces a variety of films, including stretch, maxstretch, laminated barrier, form-fill seal, and collation shrink films, as well as tinted food wraps. Its comprehensive range of bags encompasses bottom seal poly bags, garbage bags, perforated bags and sheets on rolls, punch and pin hole bags, pallet shrouds, non-entrapment seal bags, aprons, stretch hoods, side seal bags, produce rolls, header block bags, and various carry and shopping bags. The company also supplies additives such as calcium carbonate, color masterbatches, and polymer processing aids, all catering to diverse industrial and commercial applications. Beyond plastics, the company is engaged in the production and sale of various food and beverage items, including tea, coffee, related products, and both dried and steamed flour-based noodles. Its additional ventures include the fabrication and trade of film-blown plastic products, wholesale distribution of rice, trading of petroleum products, and the operation of a research and development facility focused on the plastic packaging industry. Thong Guan Industries supports a wide array of sectors, including food and beverages, industrial and packaging, transport and logistics, waste and energy, retail and e-commerce, consumer packaging, and hygiene and medical. The company maintains an international presence, with operations spanning Malaysia, the People's Republic of China, other Asian nations, Oceania, Europe, and North America. Founded in 1942, Thong Guan Industries Berhad's main office is located in Sungai Petani, Malaysia.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD
Target Price
The average target price of 7034.KL is 1.7 and suggests 14.6% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendat