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Thong Guan Industries Berhad, an investment holding company, (7034) Fair Value & Analysis

Consumer Cyclical · MY · Market cap 552M MYR

TG Thong Guan Industries Berhad, an investment holding company, 7034 · KLSE
Price1.52 MYR
Fair Value2.80 MYR
Upside+84.2%
Quality64/100
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Mixed Growth
Thin margins · 5.5% net margin
Low debt · generates free cash flow
3.13% dividend yield
Ranks above peers (12/13)
Narrow moat 39/100
Evidence: High Range 2.10 MYR – 3.50 MYR Share as image

Fair value as of: Jul 19, 2026

From 25 valuation models · updated 22 days ago

Fair value updated Jul 19, 2026, revised from 2.78 MYR to 2.80 MYR (+0.7%) since Jun 25, 2026. Share price +9.4% over the past month.

A solid business, screening 84% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (2.10 MYR). The market is more pessimistic than our downside scenario.
  • Solid quality (64/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

2.52 MYR 0.9265 MYR Fair Value 2.80 MYR Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range 0.9265 MYR – 2.52 MYR · fair‑value band 2.10 MYR – 3.50 MYR · the 1.52 MYR price screens below the 2.80 MYR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

Full chart & analysis →

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Analysis

Thong Guan Industries Berhad, an investment holding company, (7034) currently trades at 1.52 MYR, while our model-based Fair Value estimate is 2.80 MYR, implying the stock looks roughly 84.2% undervalued today. The Quality Score stands at 64/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Thong Guan Industries Berhad, an investment holding company, generated revenue of 1.2B MYR at a net margin of 5.5%. Revenue declined 0.5% year over year. It earns a return on equity of 6.5%. The balance sheet holds a net cash position of 155M MYR. Fundamentals as of Jul 19, 2026

Our scenario range runs from 2.10 MYR (bear case) to 3.50 MYR (bull case); at 1.52 MYR, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 10% below its 52-week high and 49% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -22% fair-value upside, at 84%, 7034 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF 3.06 MYR 3.79 MYR 4.67 MYR 80
Residual Income 1.82 MYR 1.86 MYR 1.83 MYR 76
Rev-Margin DCF 2.85 MYR 3.86 MYR 4.97 MYR 74
All 25 models by family
DCF Models
FCF DCF 3.02 MYR 3.84 MYR 4.87 MYR 38
Owner Earnings 2.27 MYR 2.80 MYR 3.48 MYR 31
5Y Revenue Exit 2.85 MYR 3.84 MYR 5.04 MYR 39
5Y EBITDA Exit 2.96 MYR 4.03 MYR 5.23 MYR 41
5Y P/E Exit 2.81 MYR 3.75 MYR 4.70 MYR 38
10Y Revenue Exit 2.85 MYR 3.70 MYR 4.74 MYR 36
10Y EBITDA Exit 2.97 MYR 3.82 MYR 4.87 MYR 37
10Y P/E Exit 2.88 MYR 3.65 MYR 4.51 MYR 35
Earnings-Based
Graham-Dodd 1.12 MYR 2.83 MYR 3.68 MYR 54
PEG = 1.0 0.5200 MYR 0.7500 MYR 0.9700 MYR 46
EPV 2.27 MYR 2.47 MYR 2.64 MYR 59
Dividend Discount
Gordon GGM 0.3700 MYR 0.6200 MYR 0.9000 MYR 70
DDM Multi-Stage 0.3700 MYR 0.5300 MYR 0.6800 MYR 61
Multiples
P/E Multiple 2.10 MYR 2.80 MYR 3.50 MYR 63
P/S Multiple 2.10 MYR 2.80 MYR 3.50 MYR 58
P/B Multiple 2.10 MYR 2.80 MYR 3.50 MYR 55
EV/EBIT 3.17 MYR 3.96 MYR 4.74 MYR 53
EV/EBITDA 3.22 MYR 4.02 MYR 4.82 MYR 54
EV/Revenue 2.86 MYR 3.73 MYR 4.61 MYR 43
Asset-Based
NCAV (Graham) 1.20 MYR 1.60 MYR 2.39 MYR 50
Growth DCF
Growth DCF 3.06 MYR 3.79 MYR 4.67 MYR 80
Rev-Margin DCF 2.85 MYR 3.86 MYR 4.97 MYR 74
Economic Profit
Residual Income 1.82 MYR 1.86 MYR 1.83 MYR 76
ROIC Compounder 2.27 MYR 2.50 MYR 2.77 MYR 72
Growth Earnings
Growth-Adj P/E 1.65 MYR 2.36 MYR 3.07 MYR 68

Widest divergence: Growth DCF (3.79 MYR) versus Dividend Discount (0.5300 MYR). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 1.2B MYR
Revenue growth (YoY) -0.5%
Net margin 5.5%
Return on equity 6.5%
Free cash flow 95.5M MYR FY2025
P/E ratio 8.4
More key figures
Operating margin 8.4%
EPS (TTM) 0.1700 MYR
Dividend yield 3.1%
EPS growth (YoY) +18.0%
Net cash 155M MYR FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 64 · Market factors (momentum, volatility) 74

Profitability 37
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 63
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 85
Disciplined investing over empire-building
Low Volatility 82
Calm price path (market factor)
Momentum 65
Price trend over the last 3–12 months (market factor)
52W Momentum 79
Distance to the 52-week high (market factor)
Net Issuance 87
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Thong Guan Industries Berhad, an investment holding company, manufactures and trades in plastic products and packaged food, beverages, and other consumable products in Malaysia, other Asian countries, Oceania, Europe, North America, and internationally.

Full company description

Thong Guan Industries Berhad, an investment holding company, manufactures and trades in plastic products and packaged food, beverages, and other consumable products in Malaysia, other Asian countries, Oceania, Europe, North America, and internationally. The company operates through Plastic Products; and Food, Beverages, and Other Consumable Products segments. Its products include bottom seal poly bags, side seal with adhesive tape and drum seal, garbage bags, bags and sheets perforated on roll, produce roll, punch and pin hole, non-entrapment seal, apron, header block, carry and shopping bags, laminated barrier films, form-fill seal sheet, and collation shrink films for industrial and commercial use; tinted food wraps; and additives, such as calcium carbonate, color masterbatches, and polymer processing aid. The company also manufactures and trades in tea, coffee, and other related products, as well as flour-based dried and steamed noodles. In addition, it is involved in the manufacturing, selling, and trading of film blown plastic products; wholesale of rice; trading of petroleum products; and operation of research and development center for plastic packaging industry. Further, it offers IPAK5, an IoT solution, used in packaging and safety capacity. The company serves the food and beverages, industrial and packaging, transport and logistics, waste and energy, retail and ecommerce, consumer packaging, and hygiene and medical industries. Thong Guan Industries Berhad was founded in 1942 and is headquartered in Sungai Petani, Malaysia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Thong Guan Industries Berhad, an investment holding company, reported revenue of 1.2B MYR in FY2025 versus 1.2B MYR in FY2021, a compound −0.3%/yr. Reported net income was 64.0M MYR in FY2025, compounding −8.9%/yr from FY2021.

Growth Quality 57/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
1.2B MYR
Latest YoY
−6.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−4.7%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.6%
Avg. growth/yr (19Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.1%
Revenue −0.3%/yr
FY21 1.2B MYR
FY22 1.4B MYR
FY23 1.2B MYR
FY24 1.3B MYR
FY25 1.2B MYR
Net income −8.9%/yr
FY21 92.9M MYR
FY22 99.9M MYR
FY23 71.3M MYR
FY24 67.2M MYR
FY25 64.0M MYR
Character of growth · EPS growth decomposed (2014-2025) +2.0 % p.a.
Revenue per share +1.3 pp

of which total revenue +6.1 pp · buybacks/dilution −4.8 pp

EBIT margin +2.5 pp
Tax rate −1.4 pp
Residual (interest, one-offs) −0.4 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Thong Guan Industries Berhad, an investment holding company, Fair Value". https://www.fairvalue-calculator.com/stock/7034

Peer Group

Packaging & Containers · 272 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 64 · Top 25%
Fair Value upside +84% · Top 25%
Return on equity (TTM) 6% · Above median
Return on assets 4% · Above median
Net margin (TTM) 6% · Above median
Operating margin (TTM) 8% · Above median
Revenue growth -1% · Below median
Dividend yield (TTM) 3.1% · Above median
Debt / equity 0.02× · Lower than 75% of peers

Valuation Multiples vs Packaging & Containers median · lower = cheaper

P/E (TTM) 8.4× · Cheaper than 75% of peers
P/B 0.15× · Cheaper than 75% of peers
P/S (TTM) 0.11× · Cheaper than 75% of peers
P/FCF 1.4× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 9
FUTURE 0 · sector 1
PAST 26 · sector 21
HEALTH 99 · sector 92
DIVIDEND 63 · sector 42

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Packaging & Containers stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

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PT Fajar Surya Wisesa Tbk, FASW 5,312 IDR 1,194 IDR -78%
Taiwan Hon Chuan Enterprise Co 9939 132.50 TWD 127.06 TWD -4%
Time Technoplast Limited TIMETECHNO ₹206.82 ₹161.42 -22%
EPL Limited 500135 ₹222.25 ₹111.65 -50%
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Frequently asked questions

Is Thong Guan Industries Berhad, an investment holding company, (7034) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of 2.80 MYR versus a price of 1.52 MYR, about +84% (undervalued).
What is the fair value of 7034?
Our model-based fair value for Thong Guan Industries Berhad, an investment holding company, is 2.80 MYR (as of Jul 19, 2026), built from audited fundamentals. The current price is 1.52 MYR.
What is the quality score of 7034?
Thong Guan Industries Berhad, an investment holding company, has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Thong Guan Industries Berhad, an investment holding company, (7034)?
Thong Guan Industries Berhad, an investment holding company, reported trailing-twelve-month revenue of about 1.2B MYR (latest available figure, as of Jul 19, 2026).
What is the net profit margin of 7034?
The net profit margin of Thong Guan Industries Berhad, an investment holding company, is about 5.5%, meaning it keeps roughly 5.5% of revenue as net income. Based on the latest reported figures.
Does Thong Guan Industries Berhad, an investment holding company, pay a dividend?
Thong Guan Industries Berhad, an investment holding company, currently shows a dividend yield of about 2.96% relative to its recent price (as of Jul 19, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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