Thong Guan Industries Berhad

KLSE:TGUAN Stock Report

Market Cap: RM747.0m

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 (MYR1.84) is trading above our estimate of fair value (MYR1.13)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

TGUAN 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/Revenue0.5x
Enterprise Value/EBITDA5.1x
PEG Ratio0.6x

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 Average12.7x
BPPLAS BP Plastics Holding Bhd
10.3x13.1%RM360.3m
SLP SLP Resources Berhad
28.4x23.5%RM301.1m
PPHB Public Packages Holdings Berhad
4.3xn/aRM209.2m
MASTER Master-Pack Group Berhad
7.7xn/aRM196.1m
TGUAN Thong Guan Industries Berhad
10.3x16.1%RM747.0m

Price-To-Earnings vs Peers: TGUAN is good value based on its Price-To-Earnings Ratio (10.3x) compared to the peer average (12.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a26.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a26.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: TGUAN is good value based on its Price-To-Earnings Ratio (10.3x) compared to the Asian Packaging industry average (17.6x).


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 Ratio10.3x
Fair PE Ratio16.3x

Price-To-Earnings vs Fair Ratio: TGUAN is good value based on its Price-To-Earnings Ratio (10.3x) compared to the estimated Fair Price-To-Earnings Ratio (16.3x).


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
CurrentRM1.84
RM2.78
+51.3%
2.0%RM2.86RM2.74n/a3
Mar ’25RM1.88
RM2.78
+48.0%
2.0%RM2.86RM2.74n/a3
Feb ’25RM1.91
RM2.78
+45.7%
2.0%RM2.86RM2.74n/a3
Jan ’25RM1.88
RM2.81
+49.2%
2.0%RM2.86RM2.75n/a2
Aug ’24RM2.04
RM3.14
+53.7%
2.7%RM3.22RM3.05n/a2
Jul ’24RM2.14
RM3.14
+46.5%
2.7%RM3.22RM3.05n/a2
Jun ’24RM2.24
RM3.14
+40.0%
2.7%RM3.22RM3.05n/a2
May ’24RM2.28
RM3.17
+38.8%
3.6%RM3.28RM3.05n/a2
Apr ’24RM2.30
RM3.17
+37.6%
3.6%RM3.28RM3.05n/a2
Mar ’24RM2.24
RM3.17
+41.3%
3.6%RM3.28RM3.05RM1.882
Dec ’23RM2.46
RM4.27
+73.4%
6.4%RM4.54RM3.99RM1.872
Nov ’23RM2.70
RM4.27
+58.0%
6.4%RM4.54RM3.99RM1.852
Oct ’23RM2.60
RM4.27
+64.0%
6.4%RM4.54RM3.99RM1.922
Sep ’23RM2.56
RM4.27
+66.6%
6.4%RM4.54RM3.99RM2.012
Aug ’23RM2.43
RM4.22
+73.7%
7.6%RM4.54RM3.90RM2.042
Jul ’23RM2.27
RM4.22
+85.9%
7.6%RM4.54RM3.90RM2.142
Jun ’23RM2.41
RM4.22
+75.1%
7.6%RM4.54RM3.90RM2.242
May ’23RM2.50
RM4.22
+68.8%
7.6%RM4.54RM3.90RM2.282
Apr ’23RM2.36
RM4.22
+78.8%
7.6%RM4.54RM3.90RM2.302
Mar ’23RM2.44
RM4.80
+96.7%
18.8%RM5.70RM3.90RM2.242

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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