Hwa Tai Industries Berhad Valuation

Is HWATAI 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 HWATAI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HWATAI (MYR0.52) is trading below our estimate of fair value (MYR2.02)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for HWATAI. This is calculated by dividing HWATAI's market cap by their current revenue.
What is HWATAI's PS Ratio?
PS Ratio	0.4x
Sales	RM 94.92m
Market Cap	RM 38.91m

HWATAI 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	0.7x
Enterprise Value/EBITDA	11.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for HWATAI 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	0.6x
KHEESAN Khee San Berhad	0.6x	n/a	RM 32.9m
MBN MYMBN Berhad	0.8x	n/a	RM 54.0m
ENEST Enest Group Berhad	0.5x	n/a	RM 65.1m
SG SaudiGold Group Berhad	0.4x	n/a	RM 31.2m
HWATAI Hwa Tai Industries Berhad	0.4x	n/a	RM 38.9m

Price-To-Sales vs Peers: HWATAI is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

How does HWATAI's PS Ratio compare vs other companies in the MY Food Industry?

9 Companies	Price / Sales	Estimated Growth	Market Cap
FGV FGV Holdings Berhad	0.2x	1.1%	US$944.16m
LHI Leong Hup International Berhad	0.2x	2.7%	US$525.73m
MSM MSM Malaysia Holdings Berhad	0.2x	2.9%	US$175.61m
MFLOUR Malayan Flour Mills Berhad	0.2x	4.7%	US$151.98m

9 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: HWATAI is good value based on its Price-To-Sales Ratio (0.4x) compared to the MY Food industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is HWATAI'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.

HWATAI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.4x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate HWATAI'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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