Chuan Huat Resources Berhad Valuation

Q: What is the Fair Price of CHUAN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CHUAN (MYR0.38) is trading below our estimate of [[fair value]] (MYR4.21)

Is CHUAN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CHUAN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CHUAN (MYR0.38) is trading below our estimate of fair value (MYR4.21)

Significantly Below Fair Value: CHUAN is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CHUAN?

Key metric: As CHUAN is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for CHUAN. This is calculated by dividing CHUAN's market cap by their current revenue.
What is CHUAN's PS Ratio?
PS Ratio	0.08x
Sales	RM 775.30m
Market Cap	RM 63.25m

CHUAN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	22.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does CHUAN's PS Ratio compare to its peers?

The above table shows the PS ratio for CHUAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.8x
TURBO Turbo-Mech Berhad	1.4x	n/a	RM 65.9m
ACO ACO Group Berhad	0.5x	n/a	RM 74.7m
UMS UMS Holdings Berhad	1.1x	n/a	RM 85.4m
KPSCB KPS Consortium Berhad	0.06x	n/a	RM 76.4m
CHUAN Chuan Huat Resources Berhad	0.08x	n/a	RM 63.3m

Price-To-Sales vs Peers: CHUAN is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

How does CHUAN's PS Ratio compare vs other companies in the MY Trade Distributors Industry?

7 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	0.5x	2.9%
CHUAN Chuan Huat Resources Berhad	0.08x	n/a	US$14.16m
DKSH DKSH Holdings (Malaysia) Berhad	0.1x	2.8%	US$180.67m
AYS AYS Ventures Berhad	0.1x	n/a	US$30.91m

7 Companies		Estimated Growth	Market Cap
Industry Avg.	0.5x	6.5%
CHUAN Chuan Huat Resources Berhad	0.08x	n/a	US$14.16m

No more companies

Price-To-Sales vs Industry: CHUAN is good value based on its Price-To-Sales Ratio (0.1x) compared to the MY Trade Distributors industry average (0.5x).

Price to Sales Ratio vs Fair Ratio

What is CHUAN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CHUAN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.08x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate CHUAN's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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