Rhong Khen International Berhad Valuation

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

RKI (MYR1.19) is trading above our estimate of [[fair value]] (MYR0.57)

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

Valuation Score

0/6

Valuation Score 0/6

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

Share Price vs Fair Value

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

Below Fair Value: RKI (MYR1.19) is trading above our estimate of fair value (MYR0.57)

Significantly Below Fair Value: RKI is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As RKI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RKI. This is calculated by dividing RKI's market cap by their current earnings.
What is RKI's PE Ratio?
PE Ratio	18.6x
Earnings	RM 12.45m
Market Cap	RM 232.01m

RKI 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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does RKI's PE Ratio compare to its peers?

The above table shows the PE ratio for RKI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	13.4x
JAYCORP Jaycorp Berhad	12.5x	10.8%	RM 182.7m
POHUAT Poh Huat Resources Holdings Berhad	11.5x	15.7%	RM 365.7m
DPS DPS Resources Berhad	21.8x	n/a	RM 137.4m
HOMERIZ Homeritz Corporation Berhad	7.8x	4.0%	RM 266.4m
RKI Rhong Khen International Berhad	18.6x	15.2%	RM 232.0m

Price-To-Earnings vs Peers: RKI is expensive based on its Price-To-Earnings Ratio (18.6x) compared to the peer average (13.4x).

Price to Earnings Ratio vs Industry

How does RKI's PE Ratio compare vs other companies in the MY Consumer Durables Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: RKI is expensive based on its Price-To-Earnings Ratio (18.6x) compared to the MY Consumer Durables industry average (12.3x).

Price to Earnings Ratio vs Fair Ratio

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

RKI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.6x
Fair PE Ratio	12.1x

Price-To-Earnings vs Fair Ratio: RKI is expensive based on its Price-To-Earnings Ratio (18.6x) compared to the estimated Fair Price-To-Earnings Ratio (12.1x).

Analyst Price Targets

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

The above table shows the analyst RKI forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	RM 1.19	RM 1.47 +23.5%	8.8%	RM 1.60	RM 1.34	n/a	2
Nov ’25	RM 1.18	RM 1.47 +24.6%	8.8%	RM 1.60	RM 1.34	n/a	2
Oct ’25	RM 1.19	RM 1.47 +23.5%	8.8%	RM 1.60	RM 1.34	n/a	2
Sep ’25	RM 1.22	RM 1.47 +20.5%	8.8%	RM 1.60	RM 1.34	n/a	2
Aug ’25	RM 1.31	RM 1.51 +15.3%	6.0%	RM 1.60	RM 1.42	n/a	2
Jul ’25	RM 1.33	RM 1.51 +13.5%	6.0%	RM 1.60	RM 1.42	n/a	2
Jun ’25	RM 1.38	RM 1.51 +9.4%	6.0%	RM 1.60	RM 1.42	n/a	2
May ’25	RM 1.34	RM 1.26 -6.0%	3.2%	RM 1.30	RM 1.22	n/a	2
Apr ’25	RM 1.31	RM 1.26 -3.8%	3.2%	RM 1.30	RM 1.22	n/a	2
Mar ’25	RM 1.30	RM 1.26 -3.1%	3.2%	RM 1.30	RM 1.22	n/a	2
Feb ’25	RM 1.23	RM 1.30 +5.3%	5.8%	RM 1.37	RM 1.22	n/a	2
Jan ’25	RM 1.23	RM 1.30 +5.3%	5.8%	RM 1.37	RM 1.22	n/a	2
Dec ’24	RM 1.25	RM 1.30 +3.6%	5.8%	RM 1.37	RM 1.22	n/a	2
Nov ’24	RM 1.26	RM 1.36 +7.9%	0.7%	RM 1.37	RM 1.35	RM 1.18	2
Oct ’24	RM 1.32	RM 1.36 +3.0%	0.7%	RM 1.37	RM 1.35	RM 1.19	2
Sep ’24	RM 1.34	RM 1.36 +1.5%	0.7%	RM 1.37	RM 1.35	RM 1.22	2
Aug ’24	RM 1.29	RM 1.34 +3.5%	2.6%	RM 1.37	RM 1.30	RM 1.31	2
Jul ’24	RM 1.29	RM 1.34 +3.5%	2.6%	RM 1.37	RM 1.30	RM 1.33	2

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.