Choo Chiang Holdings (Catalist:42E) - Share price, News & Analysis

Q: What is the Fair Price of 42E when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

42E (SGD0.34) is trading below our estimate of [[fair value]] (SGD1.39)

42E fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	5/6
Financial Health	6/6
Dividends	4/6

42E Stock Overview

Choo Chiang Holdings Ltd., an investment holding company, engages in the retail and distribution of electrical products and accessories in Singapore.

Rewards

Trading at 75.5% below our estimate of its fair value

Earnings are forecast to grow 11.43% per year

Earnings grew by 189.9% over the past year

Risk Analysis

Shares are highly illiquid

Unstable dividend track record

Does not have a meaningful market cap (SGD71M)

Choo Chiang Holdings Competitors

MoneyMax Financial Services

Catalist:5WJ

S$87.1m

Trans-China Automotive Holdings

Catalist:VI2

S$117.9m

Thakral

SGX:AWI

S$82.4m

Maxi-Cash Financial Services

Catalist:5UF

S$176.0m

Price History & Performance

Summary of all time highs, changes and price drops for Choo Chiang Holdings
Historical stock prices
Current Share Price	S$0.34
52 Week High	S$0.40
52 Week Low	S$0.24
Beta	0.16
1 Month Change	1.49%
3 Month Change	-8.11%
1 Year Change	n/a
3 Year Change	9.68%
5 Year Change	-6.85%
Change since IPO	-8.11%

Shareholder Returns

	42E	SG Specialty Retail	SG Market
7D	0%	-0.07%	1.8%
1Y	n/a	24.6%	-0.07%

Return vs Industry: Insufficient data to determine how 42E performed against the SG Specialty Retail industry.

Return vs Market: Insufficient data to determine how 42E performed against the SG Market.

Price Volatility

Is 42E's price volatile compared to industry and market?
42E volatility
42E Average Weekly Movement	n/a
Specialty Retail Industry Average Movement	6.4%
Market Average Movement	4.8%
10% most volatile stocks in SG Market	12.3%
10% least volatile stocks in SG Market	2.2%

Stable Share Price: Insufficient data to determine 42E's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine 42E's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1977	n/a	Thomas Lim	https://www.choochiang.com

Choo Chiang Holdings Ltd., an investment holding company, engages in the retail and distribution of electrical products and accessories in Singapore. The company operates through two segments, Distribution Business and Property Investment Business. It offers cables; electrical wiring accessories; electrical circuit protection and wiring device; lighting protection; cable support system; power tool and hardware; fans; and luminaries, lamps, and accessories.

Choo Chiang Holdings Fundamentals Summary

How do Choo Chiang Holdings's earnings and revenue compare to its market cap?
42E fundamental statistics
Market Cap	S$70.60m
Earnings (TTM)	S$8.57m
Revenue (TTM)	S$79.38m

8.2x

P/E Ratio

0.9x

P/S Ratio

Is 42E overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
42E income statement (TTM)
Revenue	S$79.38m
Cost of Revenue	S$55.79m
Gross Profit	S$23.59m
Other Expenses	S$15.02m
Earnings	S$8.57m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.041
Gross Margin	29.71%
Net Profit Margin	10.79%
Debt/Equity Ratio	0%

How did 42E perform over the long term?

See historical performance and comparison

Dividends

7.6%

Current Dividend Yield

49%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 42E undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 42E?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 42E. This is calculated by dividing 42E's market cap by their current preferred multiple.
What is 42E's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	S$70.60m

42E 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	4.6x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does 42E's PE Ratio compare to its peers?

42E PE Ratio vs Peers

The above table shows the PE ratio for 42E vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.1x
5WJ MoneyMax Financial Services	4.4x	n/a	S$87.1m
VI2 Trans-China Automotive Holdings	4.7x	22.0%	S$117.9m
AWI Thakral	6.8x	n/a	S$82.4m
5UF Maxi-Cash Financial Services	12.2x	n/a	S$176.0m
42E Choo Chiang Holdings	8.2x	11.4%	S$70.6m

Price-To-Earnings vs Peers: 42E is good value based on its Price-To-Earnings Ratio (8.2x) compared to the peer average (11.1x).

Price to Earnings Ratio vs Industry

How does 42E's PE Ratio compare vs other companies in the Asian Specialty Retail Industry?

Price-To-Earnings vs Industry: 42E is good value based on its Price-To-Earnings Ratio (8.2x) compared to the SG Specialty Retail industry average (10.8x)

Price to Earnings Ratio vs Fair Ratio

What is 42E'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.

42E PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 42E's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 42E when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 42E (SGD0.34) is trading below our estimate of fair value (SGD1.39)

Significantly Below Fair Value: 42E is trading below fair value by more than 20%.

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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Future Growth

How is Choo Chiang Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 42E's forecast earnings growth (11.4% per year) is above the savings rate (1.8%).

Earnings vs Market: 42E's earnings (11.4% per year) are forecast to grow slower than the SG market (13.2% per year).

High Growth Earnings: 42E's earnings are forecast to grow, but not significantly.

Revenue vs Market: 42E's revenue (8.2% per year) is forecast to grow faster than the SG market (8% per year).

High Growth Revenue: 42E's revenue (8.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 42E's Return on Equity is forecast to be low in 3 years time (17.8%).

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Past Performance

How has Choo Chiang Holdings performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

2.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 42E has high quality earnings.

Growing Profit Margin: 42E's current net profit margins (10.8%) are higher than last year (5.6%).

Past Earnings Growth Analysis

Earnings Trend: 42E's earnings have grown by 2.6% per year over the past 5 years.

Accelerating Growth: 42E's earnings growth over the past year (189.9%) exceeds its 5-year average (2.6% per year).

Earnings vs Industry: 42E earnings growth over the past year (189.9%) exceeded the Specialty Retail industry 12.8%.

Return on Equity

High ROE: 42E's Return on Equity (16.1%) is considered low.

Discover strong past performing companies

Financial Health

How is Choo Chiang Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 42E's short term assets (SGD46.7M) exceed its short term liabilities (SGD13.3M).

Long Term Liabilities: 42E's short term assets (SGD46.7M) exceed its long term liabilities (SGD3.0M).

Debt to Equity History and Analysis

Debt Level: 42E is debt free.

Reducing Debt: 42E has no debt compared to 5 years ago when its debt to equity ratio was 6.2%.

Debt Coverage: 42E has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 42E has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Choo Chiang Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

7.65%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 42E's dividend (7.65%) is higher than the bottom 25% of dividend payers in the SG market (2.28%).

High Dividend: 42E's dividend (7.65%) is in the top 25% of dividend payers in the SG market (5.84%)

Stability and Growth of Payments

Stable Dividend: 42E has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 42E's dividend payments have increased, but the company has only paid a dividend for 6 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.5%), 42E's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (55.7%), 42E's dividend payments are covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure

CEO

Thomas Lim (66 yo)

7.92yrs

Tenure

Mr. Teck Chuan Lim, also known as Thomas, has been the Executive Chairman and Chief Executive Officer of Choo Chiang Holdings Ltd. since September 5, 2014. Mr. Lim is responsible for the overall management...

Leadership Team

Experienced Management: 42E's management team is considered experienced (4 years average tenure).

Board Members

Experienced Board: 42E's board of directors are considered experienced (4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/06 00:00
End of Day Share Price	2022/07/19 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31