The Zhitong Finance App learned that SC Johnson Holdings (01955) released interim results after the market last Friday (November 27). Profit attributable to shareholders increased 433.87% to HK$82.44 million. Earnings for the period increased 52.74% year over year to HK$1,303 billion, exceeding market expectations.

As of 9:35, it had risen 2.67%, the price was HK$0.77, and the turnover was 932,300.

According to reports, the sharp increase in performance revenue is mainly due to increased demand for cleaning due to hygiene incidents, with government contracts increasing dramatically, while the increase in profitability is mainly due to cost control measures and the shift of bidding methods to focus on higher-profit contracts.

On the Zhitong Finance App“Net profit increased more than 4 times, dynamic PE was only 2.6 times, and SC Johnson Holdings (01955), the concept stock of the pandemic, may usher in a valuation repair”It is indicated that SC Johnson Holdings has performed well. Past revenue has maintained a double-digit growth level. Revenue has accelerated due to increased demand in the health incident industry this year. As a leader in the environmental health services industry, it has stable cooperation with the government, and has competitive advantages such as a brand history of more than 40 years and strong capital, and future performance is expected to be impressive.

However, SC Johnson Holdings' current valuation is very low, and the PB value is less than 1 times. Using the profit calculation for FY2021, the dynamic PE value is only 2.6 times. Obviously, it is undervalued, and there is a lot of room for appreciation. The company is trying to expand its business footprint domestically, and investors can pay attention to its later actions.