Risk factor
Very high price volatility
Profitability factor
Undervalued vs peers
About
ATA IMS Berhad, a Malaysian-headquartered investment holding company, is a prominent provider of electronics manufacturing services (EMS). The firm's core operations involve the creation and distribution of precision plastic injection molded parts, in addition to offering secondary processing, sub-assembly, and complete assembly solutions for finished products within the electronics sector. It also specializes in tooling fabrication. Beyond these primary EMS activities, ATA IMS manufactures and sells a broad spectrum of electrical and electronic components, air filters, sterilizers, metal stamped products, and related items. The company also undertakes the design and fabrication of specialized tools and molds. Its diverse product portfolio encompasses various offerings, such as cordless and canister vacuum cleaners, advanced air purifiers and fans featuring proprietary HEPA filter technology and Wi-Fi connectivity, LED lighting solutions, Internet of Things (IoT) technologies, automotive components, and medical devices. Furthermore, the company engages in the wholesale and retail of food products and consumer goods. Incorporated in 1989 and based in Johor Bahru, Malaysia, the company exports its products globally. It was formerly known as Denko Industrial Corporation Berhad before adopting the name ATA IMS Berhad in July 2018.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. Specifically, the stock is underpriced on P/FCF.