Thong Guan Industries Berhad

KLSE:TGUAN Stock Report

Market Cap: RM 610.5m

Thong Guan Industries Berhad Valuation

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

Below Fair Value: TGUAN (MYR1.52) is trading below our estimate of fair value (MYR1.75)

Significantly Below Fair Value: TGUAN is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TGUAN. This is calculated by dividing TGUAN's market cap by their current earnings.
What is TGUAN's PE Ratio?
PE Ratio9x
EarningsRM 68.08m
Market CapRM 610.49m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TGUAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.8x
BPPLAS BP Plastics Holding Bhd
10.2x15.1%RM 340.6m
SLP SLP Resources Berhad
25.6x21.3%RM 285.3m
PPHB Public Packages Holdings Berhad
4xn/aRM 210.7m
MASTER Master-Pack Group Berhad
7.2xn/aRM 193.9m
TGUAN Thong Guan Industries Berhad
9x16.5%RM 610.5m

Price-To-Earnings vs Peers: TGUAN is good value based on its Price-To-Earnings Ratio (9x) compared to the peer average (11.8x).

Price to Earnings Ratio vs Industry

How does TGUAN's PE Ratio compare vs other companies in the Asian Packaging Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TGUAN 9.0xIndustry Avg. 17.5xNo. of Companies37PE01224364860+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TGUAN is good value based on its Price-To-Earnings Ratio (9x) compared to the Asian Packaging industry average (17.5x).

Price to Earnings Ratio vs Fair Ratio

What is TGUAN'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.

TGUAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9x
Fair PE Ratio13.7x

Price-To-Earnings vs Fair Ratio: TGUAN is good value based on its Price-To-Earnings Ratio (9x) compared to the estimated Fair Price-To-Earnings Ratio (13.7x).

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 TGUAN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 1.52
RM 2.63
+72.7%
1.7%RM 2.67RM 2.58n/a2
Nov ’25RM 1.51
RM 2.74
+81.1%
2.4%RM 2.80RM 2.67n/a2
Oct ’25RM 1.61
RM 2.74
+69.9%
2.4%RM 2.80RM 2.67n/a2
Sep ’25RM 1.66
RM 2.74
+64.8%
2.4%RM 2.80RM 2.67n/a2
Aug ’25RM 1.84
RM 2.77
+50.3%
3.4%RM 2.86RM 2.67n/a2
Jul ’25RM 1.95
RM 2.76
+41.5%
2.8%RM 2.86RM 2.67n/a3
Jun ’25RM 2.09
RM 2.76
+32.1%
2.8%RM 2.86RM 2.67n/a3
May ’25RM 2.06
RM 2.78
+35.1%
2.0%RM 2.86RM 2.74n/a3
Apr ’25RM 1.85
RM 2.78
+50.5%
2.0%RM 2.86RM 2.74n/a3
Mar ’25RM 1.88
RM 2.78
+48.0%
2.0%RM 2.86RM 2.74n/a3
Feb ’25RM 1.91
RM 2.78
+45.7%
2.0%RM 2.86RM 2.74n/a3
Jan ’25RM 1.88
RM 2.81
+49.2%
2.0%RM 2.86RM 2.75n/a2
Aug ’24RM 2.04
RM 3.14
+53.7%
2.7%RM 3.22RM 3.05RM 1.842
Jul ’24RM 2.14
RM 3.14
+46.5%
2.7%RM 3.22RM 3.05RM 1.952
Jun ’24RM 2.24
RM 3.14
+40.0%
2.7%RM 3.22RM 3.05RM 2.092
May ’24RM 2.28
RM 3.17
+38.8%
3.6%RM 3.28RM 3.05RM 2.062
Apr ’24RM 2.30
RM 3.17
+37.6%
3.6%RM 3.28RM 3.05RM 1.852
Mar ’24RM 2.24
RM 3.17
+41.3%
3.6%RM 3.28RM 3.05RM 1.882
Dec ’23RM 2.46
RM 4.27
+73.4%
6.4%RM 4.54RM 3.99RM 1.872
Nov ’23RM 2.70
RM 4.27
+58.0%
6.4%RM 4.54RM 3.99RM 1.852

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.

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