Zhuding International Ltd (ZHUD)

[KeepItRealistic]

$ZHUD is trading at a huge discount

In 2019, $ZHUD turned a very respectable profit. Profit is measured in terms of EBITDA. The profit was $0.017, using a multiple of 20 which is very respectable, $ZHUD is Valued at $0.34 PPS minimum.

Shareholder's Equity was $34.5m, using 401m shares outstanding and a P/B Ratio of 3 (very undervalued 2020 Engineering/Construction is 49) that gives the equity portion of the company a value of $0.24. If we used the mid point of the set value for 2020, $ZHUD would have a Shareholder's Equity value of 25 x $0.08 = $2.00, not unreasonable, but the Market Cap suggests that would be too high at $800m imo, but not impossible.

EBITDA + P/B Ratio = $0.58 (low end) to $2.34 (mid end), to $4.00+ (high end).

2020 for 6 months the company struggled, as did the world economy due to the pandemic, COVID-19. We've watched company after company go bankrupt, terminate millions of people, or use toxic financing during the difficult times. $ZHUD didn't, in fact, they did the opposite, they used cash in hand to lower the liabilities, $10m to be exact, leaving only $3.8m in liabilities, which Includes their $1.6m lease agreement. No toxic debt what so ever. They even managed to maintain over $38m Assets or $34m Shareholder's Equity valued at $0.25 or more and generated over $8.5m in revenues and only suffering a $400k loss, all that while going through 6 months of difficult times during the pandemic.

Anyone suggesting that's terrible, really needs to learn to read and comprehend financials.

The CEO even spent $10m cash on a new facility which will expand the company's future, creating more revenues and sweet profit margins by delivering their plans domestically and internationally.

To me, it shows his confidence in spending cash to make cash and generating more profits. Heck, he even issued a PR with plans to expand the company's direction by acquiring an Interior Design company, making them more diverse and competitive.

$ZHUD is trading well below it’s fair Market Value