SEHK:3838Food
China Starch Holdings (SEHK:3838) Stock Premium Meets Vanishing Profit Margin
China Starch Holdings walked into these H1 results with a weak share price trend and a rich valuation, trading on a 41.7x P/E against lower industry multiples. The market had already marked the stock down over the past month, yet today’s earnings story revolves less around revenue and more around profit quality.
Net income from ongoing operations for the trailing year is only slightly positive and heavily flattered by a one off gain of C¥9.7m, while the trailing net margin sits at just 0.2%...