SEHK:235

Stock Analysis Report

China Strategic Holdings

Executive Summary

China Strategic Holdings Limited, an investment holding company, trades in metal minerals, metal, coke products, and electronic components in Hong Kong, the People’s Republic of China, Europe, and South America.


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has China Strategic Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 235's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

235

19.4%

HK Trade Distributors

5.3%

HK Market


1 Year Return

-68.8%

235

-33.9%

HK Trade Distributors

-20.4%

HK Market

Return vs Industry: 235 matched the Hong Kong Trade Distributors industry which returned -69.1% over the past year.

Return vs Market: 235 underperformed the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

235IndustryMarket
7 Day0%19.4%5.3%
30 Day-20.0%-19.3%-8.5%
90 Day-31.4%-25.7%-14.7%
1 Year-68.8%-68.8%-31.3%-33.9%-17.6%-20.4%
3 Year-83.2%-83.2%-30.1%-36.3%-2.5%-12.3%
5 Year-75.6%-81.0%-59.5%-66.3%-5.7%-20.9%

Price Volatility Vs. Market

How volatile is China Strategic Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Strategic Holdings undervalued compared to its fair value and its price relative to the market?

0.12x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 235's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 235's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 235 is unprofitable, so we can't compare its PE Ratio to the Trade Distributors industry average.

PE vs Market: 235 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 235's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 235 is good value based on its PB Ratio (0.1x) compared to the HK Trade Distributors industry average (0.4x).


Next Steps

Future Growth

How is China Strategic Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.7%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China Strategic Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has China Strategic Holdings performed over the past 5 years?

-11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 235 is currently unprofitable.

Growing Profit Margin: 235 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 235 is unprofitable, and losses have increased over the past 5 years at a rate of -11.6% per year.

Accelerating Growth: Unable to compare 235's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 235 is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (-0.08%).


Return on Equity

High ROE: 235 has a negative Return on Equity (-9.58%), as it is currently unprofitable.


Next Steps

Financial Health

How is China Strategic Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 235's short term assets (HK$4.2B) exceed its short term liabilities (HK$1.8B).

Long Term Liabilities: 235 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 235's debt to equity ratio (50.9%) is considered high.

Reducing Debt: Insufficient data to determine if 235's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 235 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 235's debt is covered by short term assets (assets are 2.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 235 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if 235 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is China Strategic Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 235's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 235's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 235's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 235's dividend payments have been increasing.


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: No need to calculate the sustainability of 235's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

9.0yrs

Average board tenure


CEO

Ka Lok Sue (54yo)

2.17s

Tenure

HK$3,582,000

Compensation

Mr. Ka Lok Sue, C.P.A, has been Chief Executive Officer of China Strategic Holdings Limited since January 18, 2018. Mr. Sue served as Company Secretary of China Strategic Holdings Ltd. since April 1, 2015  ...


CEO Compensation Analysis

Compensation vs Market: Ka Lok's total compensation ($USD461.95K) is above average for companies of similar size in the Hong Kong market ($USD232.34K).

Compensation vs Earnings: Ka Lok's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Ka Lok Sue
CEO & Executive Director2.17yrsHK$3.58mno data
Kam Wah Chow
Executive Director12.67yrsHK$1.59mno data
Chun Yeung Lee
Executive Director5yrsHK$1.55mno data
Ching-Fai Or
Chairman of the Board8yrsHK$12.41mno data
Yu-Chun Chow
Independent Non-Executive Director9yrsHK$200.00kno data
Hoi Ying Leung
Independent Non-Executive Director12.42yrsHK$150.00kno data
Yin Fan Ma
Independent Non-Executive Director12.42yrsHK$200.00kno data

9.0yrs

Average Tenure

56yo

Average Age

Experienced Board: 235's board of directors are considered experienced (9 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Strategic Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Strategic Holdings Limited
  • Ticker: 235
  • Exchange: SEHK
  • Founded:
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$390.717m
  • Shares outstanding: 16.99b
  • Website: https://www.cshldgs.com

Number of Employees


Location

  • China Strategic Holdings Limited
  • China Resources Building
  • Rooms 3206-3210
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
235SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 1994

Biography

China Strategic Holdings Limited, an investment holding company, trades in metal minerals, metal, coke products, and electronic components in Hong Kong, the People’s Republic of China, Europe, and South America. It operates through Investment in Securities, Trading, Money lending, and Securities Brokerage segments. The company engages in trading iron ore, steel coils, and chrome ore, as well as LCD panels. It also invests in various securities, including listed equity shares, equity linked notes, equity convertible notes, and bonds. In addition, the company provides structured collateralized loans, and mortgage and personal loans; securities brokerage, margin financing, and placing and underwriting services; and management services. China Strategic Holdings Limited is based in Wanchai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 13:26
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.