SHSE:600737

Stock Analysis Report

Executive Summary

Cofco Tunhe Sugar CO,. Ltd engages in the production of sugar and tomato processing activities in China.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Cofco Tunhe Sugar CO's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 600737 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.1%

600737

4.5%

CN Food

2.7%

CN Market


1 Year Return

-19.3%

600737

22.2%

CN Food

-4.5%

CN Market

Return vs Industry: 600737 underperformed the CN Food industry which returned 21.8% over the past year.

Return vs Market: 600737 underperformed the CN Market which returned -7% over the past year.


Shareholder returns

600737IndustryMarket
7 Day2.1%4.5%2.7%
30 Day1.6%7.3%-6.4%
90 Day-0.3%14.5%-4.5%
1 Year-19.3%-19.3%23.7%22.2%-3.0%-4.5%
3 Year-18.8%-21.7%65.0%57.7%-9.7%-13.3%
5 Year-38.9%-41.3%69.2%57.9%-20.3%-25.2%

Price Volatility Vs. Market

How volatile is Cofco Tunhe Sugar CO's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Cofco Tunhe Sugar CO undervalued compared to its fair value and its price relative to the market?

16.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 600737 (CN¥9.49) is trading below our estimate of fair value (CN¥10.53)

Significantly Below Fair Value: 600737 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 600737 is poor value based on its PE Ratio (67.4x) compared to the Food industry average (44.3x).

PE vs Market: 600737 is poor value based on its PE Ratio (67.4x) compared to the CN market (33.4x).


Price to Earnings Growth Ratio

PEG Ratio: 600737 is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: 600737 is good value based on its PB Ratio (2.5x) compared to the CN Food industry average (3.2x).


Next Steps

Future Growth

How is Cofco Tunhe Sugar CO forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

48.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600737's forecast earnings growth (48.7% per year) is above the savings rate (3.2%).

Earnings vs Market: 600737's earnings (48.7% per year) are forecast to grow faster than the CN market (20.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 600737's revenue (17.6% per year) is forecast to grow faster than the CN market (15.9% per year).

High Growth Revenue: 600737's revenue (17.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 600737's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Cofco Tunhe Sugar CO performed over the past 5 years?

34.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 600737 has a large one-off loss of CN¥184.4M impacting its September 30 2019 financial results.

Growing Profit Margin: 600737's current net profit margins (1.8%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: 600737's earnings have grown significantly by 34.5% per year over the past 5 years.

Accelerating Growth: 600737's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 600737 had negative earnings growth (-71.5%) over the past year, making it difficult to compare to the Food industry average (11%).


Return on Equity

High ROE: 600737's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Cofco Tunhe Sugar CO's financial position?


Financial Position Analysis

Short Term Liabilities: 600737's short term assets (CN¥15.2B) exceed its short term liabilities (CN¥12.8B).

Long Term Liabilities: 600737's short term assets (CN¥15.2B) exceed its long term liabilities (CN¥182.8M).


Debt to Equity History and Analysis

Debt Level: 600737's debt to equity ratio (58.1%) is considered high.

Reducing Debt: 600737's debt to equity ratio has reduced from 86.3% to 58.1% over the past 5 years.

Debt Coverage: 600737's debt is well covered by operating cash flow (39.7%).

Interest Coverage: 600737's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Cofco Tunhe Sugar CO's current dividend yield, its reliability and sustainability?

1.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 600737's dividend (1.79%) is higher than the bottom 25% of dividend payers in the CN market (0.44%).

High Dividend: 600737's dividend (1.79%) is low compared to the top 25% of dividend payers in the CN market (1.96%).


Stability and Growth of Payments

Stable Dividend: 600737's dividend payments have been volatile in the past 10 years.

Growing Dividend: 600737's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Linghe Xia (54yo)

1

Tenure

Mr. Xia Linghe has been Chairman of COFCO Tunhe Co., Ltd. since January 25, 2013 and has been its General Manager since April 24, 2019. He was General Manager and Secretary of the Party Committee at COFCO  ...


Leadership Team

NamePositionTenureCompensationOwnership
Linghe Xia
Chairman & CEO1yrno datano data
Wei Zhao
Chief Accountant and Director6.83yrsno datano data
Zuojiang Yu
Deputy General Manager6.67yrsno datano data
Zhen Wu
Deputy General Manager6.83yrsno datano data
Xue Gong Jiang
Secretary of the Board of Directors13.67yrsno datano data
Tian Chi Yu
Deputy General Manager6.83yrsno datano data
Feng Lin
Deputy General Manager10.5yrsno datano data

6.8yrs

Average Tenure

51yo

Average Age

Experienced Management: 600737's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Linghe Xia
Chairman & CEO1yrno datano data
Wei Zhao
Chief Accountant and Director6.83yrsno datano data
Yan Min Sun
Director13.25yrsno datano data
Ke Jian Wei
Chairman of the Supervisory Board13.25yrsno datano data
Jianlin Zhu
Independent Directorno datano datano data
Dan Li
Independent Directorno datano datano data
Lingyi Wang
Directorno datano datano data
Changyin Ge
Independent Directorno datano datano data
Yurong Gu
Independent Directorno datano datano data
Baojiang Li
Independent Directorno datano datano data

10.3yrs

Average Tenure

53yo

Average Age

Experienced Board: 600737's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

Cofco Tunhe Sugar CO,. Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cofco Tunhe Sugar CO,. Ltd
  • Ticker: 600737
  • Exchange: SHSE
  • Founded:
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: CN¥18.843b
  • Shares outstanding: 2.14b
  • Website: https://www.cofcosugar.com

Number of Employees


Location

  • Cofco Tunhe Sugar CO,. Ltd
  • China Merchants Bank Building
  • 20th Floor
  • Urumqi
  • Xinjiang Uygur Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
600737SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYAug 1996
600737XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYAug 1996

Biography

Cofco Tunhe Sugar CO,. Ltd engages in the production of sugar and tomato processing activities in China. Its products include sugar comprising raw, white, organic white granulated, refined, and brown sugar; molasses; sugar beet granules and glutinous rice husks; and ketchup, tomato sauce, lycopene, tomato drinks, and raw tomatoes. The company is based in Urumqi, China. Cofco Tunhe Sugar CO,. Ltd is a subsidiary of COFCO Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 14:52
End of Day Share Price2020/04/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.