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Texchem Resources Bhd, an investment holding company, (8702) Fair Value & Analysis

Industrials · MY · Market cap 86.8M MYR

TR Texchem Resources Bhd, an investment holding company, 8702 · KLSE
Price1.07 MYR
Fair Value0.5100 MYR
Upside-52.3%
Quality57/100
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Weak Growth
Thin margins · 0.5% net margin
Low debt · generates free cash flow
Mixed vs. peers (5/12)
Narrow moat 29/100
Evidence: High Range 0.3800 MYR – 0.6400 MYR Share as image

Fair value as of: Jul 16, 2026

From 10 valuation models · updated 25 days ago

Share price +41.7% over the past month.

A solid business, but screening 52% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (0.6400 MYR). The favourable scenario is already priced in.
  • Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

3.76 MYR 0.6696 MYR Fair Value 0.5100 MYR Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range 0.6696 MYR – 3.76 MYR · fair‑value band 0.3800 MYR – 0.6400 MYR · the 1.07 MYR price screens above the 0.5100 MYR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Texchem Resources Bhd, an investment holding company, (8702) currently trades at 1.07 MYR, while our model-based Fair Value estimate is 0.5100 MYR, implying the stock looks roughly 52.3% overvalued today. The Quality Score stands at 57/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Texchem Resources Bhd, an investment holding company, generated revenue of 1.1B MYR at a net margin of 0.5%. Revenue grew 1.8% year over year. It earns a return on equity of 3.3%. Net debt stands at 440M MYR. Fundamentals as of Jul 16, 2026

Our scenario range runs from 0.3800 MYR (bear case) to 0.6400 MYR (bull case); at 1.07 MYR, the current price sits above 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 near its 52-week high and 60% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -14% fair-value upside, at -52%, 8702 screens richer 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 3.28 MYR 3.92 MYR 4.93 MYR 80
Residual Income 1.02 MYR 0.9200 MYR 0.6200 MYR 76
Rev-Margin DCF 3.09 MYR 4.21 MYR 5.63 MYR 74
All 10 models by family
DCF Models
Owner Earnings 2.29 MYR 2.75 MYR 3.52 MYR 31
5Y P/E Exit 1.95 MYR 2.18 MYR 2.48 MYR 38
10Y P/E Exit 2.53 MYR 2.76 MYR 2.96 MYR 35
Earnings-Based
Graham-Dodd 0.2000 MYR 0.2900 MYR 0.3300 MYR 54
Multiples
P/E Multiple 0.4700 MYR 0.6300 MYR 0.7900 MYR 63
P/B Multiple 0.3800 MYR 0.5100 MYR 0.6400 MYR 55
Asset-Based
NCAV (Graham) 0.8100 MYR 1.08 MYR 1.62 MYR 50
Growth DCF
Growth DCF 3.28 MYR 3.92 MYR 4.93 MYR 80
Rev-Margin DCF 3.09 MYR 4.21 MYR 5.63 MYR 74
Economic Profit
Residual Income 1.02 MYR 0.9200 MYR 0.6200 MYR 76

Widest divergence: Growth DCF (3.92 MYR) versus Earnings-Based (0.2900 MYR). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 1.1B MYR
Revenue growth (YoY) +1.8%
Net margin 0.5%
Return on equity 3.3%
Free cash flow 44.7M MYR FY2025
P/E ratio 19.4
More key figures
Operating margin 3.7%
EPS (TTM) 0.0400 MYR
EPS growth (YoY) +196%
Net debt 440M MYR FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 55 · Market factors (momentum, volatility) 78

Profitability 45
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 53
Earnings quality: real cash, not paper profit
Fin. Strength 32
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 71
Price trend over the last 3–12 months (market factor)
52W Momentum 95
Distance to the 52-week high (market factor)
Net Issuance 84
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

Texchem Resources Bhd, an investment holding company, engages in industrial, polymer engineering, food, restaurant, and venture businesses.

Full company description

Texchem Resources Bhd, an investment holding company, engages in industrial, polymer engineering, food, restaurant, and venture businesses. The company offers plastic resins, compounds and additives, rubber and latex processing chemicals, PVC resins, adhesive chemicals, ink and coating chemicals, food ingredients, personal care and pharmaceutical additives, dyestuff and textile auxiliary chemicals, and electronic chemicals; and polymer solutions, as well as designs for various industries comprising data storage, semiconductor, consumer electronics and electrical, telecommunications, and medical devices/life science. It also provides fresh, frozen, dried, value added, and sashimi grade seafood, as well as frozen dessert, ready-to-eat, ready-to-cook, surimi, surimi based, and fishmeal products; operates restaurants under the Sushi King, Miraku, and Hoshino Coffee brand names; and products and services under Kokubu, Wilpack, and Otafuku brands. In addition, the company rents properties; manufactures and sells extruded plastic sheets and polymer compounds; trades in chemicals, plastic resins, and other products; acts as an agent of electronic component parts and general merchandise; operates cafes; trades in medical devices and equipment; and provides management, consultation, and insurance agency services. Further, it manufactures thermoformed packaging products, embossed carrier tapes, plastic engineering precision parts, precision injection molded trays/parts, molds and toolings, plastic food trays, and plastic injection molded parts/products; and develops technology for high precision/ultra clean injection molded products. Additionally, the company provides food processing services; and designs, manufactures, and trades flexo photopolymer printing plates. It operates in Malaysia, Singapore, Thailand, Vietnam, China, Myanmar, Indonesia, Japan, the United States, Italy, Taiwan, and internationally. The company was incorporated in 1973 and is based in Penang, Malaysia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Texchem Resources Bhd, an investment holding company, reported revenue of 1.1B MYR in FY2025 versus 1.1B MYR in FY2021, a compound +0.5%/yr. Reported net income was 3.5M MYR in FY2025, compounding −39.0%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
1.1B MYR
Latest YoY
−0.6%
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.
−1.0%
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.
+1.8%
Avg. growth/yr (13Y) 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.
+0.7%
Revenue +0.5%/yr
FY21 1.1B MYR
FY22 1.1B MYR
FY23 994M MYR
FY24 1.1B MYR
FY25 1.1B MYR
Net income −39.0%/yr
FY21 25.4M MYR
FY22 21.9M MYR
FY23 −10.8M MYR
FY24 6.7M MYR
FY25 3.5M MYR

8702 screens 52% overvalued. Compare with CITIC Limited →

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Cite: Fair Value Calculator (2026). "Texchem Resources Bhd, an investment holding company, Fair Value". https://www.fairvalue-calculator.com/stock/8702

Peer Group

Conglomerates · 369 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 57 · Above median
Fair Value upside −52% · Below median
Return on equity (TTM) 3% · Below median
Return on assets 3% · Above median
Net margin (TTM) 0% · Below median
Operating margin (TTM) 4% · Below median
Revenue growth 2% · Below median
Debt / equity 0.25× · Higher than median

Valuation Multiples vs Conglomerates median · lower = cheaper

P/E (TTM) 18.6× · Pricier than median
P/B 0.11× · Cheaper than 75% of peers
P/S (TTM) 0.02× · Cheaper than 75% of peers
P/FCF 0.5× · 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 0 · sector 20
FUTURE 9 · sector 16
PAST 13 · sector 20
HEALTH 87 · sector 88
DIVIDEND 0 · sector 39

VALUE 0: the price sits above our fair-value range.

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 Conglomerates stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
CITIC Limited 0267 HK$11.28 HK$22.56 +100%
SK Inc 034730 580,000 KRW 497,919 KRW -14%
PT Astra International Tbk, ASII 4,810 IDR 9,620 IDR +100%
The Siam Cement Public Company SCC 254.00 THB 199.40 THB -21%
SRF Limited SRF ₹2,875 ₹1,053 -63%
Empresas Copec S.A COPEC 6,330 CLP 10,879 CLP +72%
Posco International Corporation 047050 50,900 KRW 61,248 KRW +20%
Tube Investments of India Limited TIINDIA ₹2,940 ₹559.30 -81%
Doosan Corporation 000155 464,000 KRW 75,620 KRW -84%
Thermax Limited THERMAX ₹4,809 ₹1,087 -77%

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Frequently asked questions

Is Texchem Resources Bhd, an investment holding company, (8702) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of 0.5100 MYR versus a price of 1.07 MYR, about −52% (overvalued).
What is the fair value of 8702?
Our model-based fair value for Texchem Resources Bhd, an investment holding company, is 0.5100 MYR (as of Jul 16, 2026), built from audited fundamentals. The current price is 1.07 MYR.
What is the quality score of 8702?
Texchem Resources Bhd, an investment holding company, has a Quality Score of 57/100. 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 Texchem Resources Bhd, an investment holding company, (8702)?
Texchem Resources Bhd, an investment holding company, reported trailing-twelve-month revenue of about 1.1B MYR (latest available figure, as of Jul 16, 2026).
What is the net profit margin of 8702?
The net profit margin of Texchem Resources Bhd, an investment holding company, is about 0.5%, meaning it keeps roughly 0.5% of revenue as net income. Based on the latest reported figures.

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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