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

Fundamentals

Solid track record and fair value.

Risks

  • China Strategic Holdings has significant price volatility in the past 3 months.
  • China Strategic Holdings is not covered by any analysts.

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


Market Performance


7 Day Return

-6.2%

SEHK:235

1.1%

HK Trade Distributors

-0.7%

HK Market


1 Year Return

-21.8%

SEHK:235

0.3%

HK Trade Distributors

-5.7%

HK Market

235 underperformed the Trade Distributors industry which returned 0.3% over the past year.

235 underperformed the Market in Hong Kong which returned -5.7% over the past year.


Share holder returns

235IndustryMarket
7 Day-6.2%1.1%-0.7%
30 Day-12.9%-0.4%-0.9%
90 Day-15.3%-6.7%-8.1%
1 Year-21.8%-21.8%5.1%0.3%-2.4%-5.7%
3 Year-69.7%-69.7%-14.5%-24.6%29.2%16.3%
5 Year-50.8%-68.4%-44.7%-54.3%19.8%-0.3%

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 based on future cash flows and its price relative to the stock market?

1.46x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for China Strategic Holdings to establish if it is available at moderate discount.

Unable to calculate intrinsic value for China Strategic Holdings to establish if it is available at substantial discount.


Price Based on Earnings

China Strategic Holdings is good value based on earnings compared to the HK Trade Distributors industry average.

China Strategic Holdings is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for China Strategic Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

China Strategic Holdings is good value based on assets compared to the HK Trade Distributors industry average.


Next Steps

Future Growth

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

-9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if China Strategic Holdings is high growth as no revenue estimate data is available.

China Strategic Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare China Strategic Holdings's revenue growth to the Hong Kong market average as no estimate data is available.

China Strategic Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

China Strategic Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if China Strategic Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

5.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China Strategic Holdings's year on year earnings growth rate has been positive over the past 5 years.

China Strategic Holdings's 1-year earnings growth exceeds its 5-year average (461.7% vs 5.2%)

China Strategic Holdings's earnings growth has exceeded the HK Trade Distributors industry average in the past year (461.7% vs 7.8%).


Return on Equity

China Strategic Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Strategic Holdings used its assets more efficiently than the HK Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

China Strategic Holdings has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is China Strategic Holdings's financial position?


Financial Position Analysis

China Strategic Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China Strategic Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

China Strategic Holdings's level of debt (60.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (22.2% vs 60.4% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.3x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate China Strategic Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate China Strategic Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as China Strategic Holdings has not reported any payouts.

Unable to verify if China Strategic Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as China Strategic Holdings has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of China Strategic Holdings's salary, the management and board of directors tenure and is there insider trading?

8.3yrs

Average board tenure


CEO

Ka Lok Sue (54yo)

1.5yrs

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

Ka Lok's remuneration is higher than average for companies of similar size in Hong Kong.

Ka Lok's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

8.3yrs

Average Tenure

56yo

Average Age

The tenure for the China Strategic Holdings board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Ka Lok Sue (54yo)

    CEO & Executive Director

    • Tenure: 1.5yrs
    • Compensation: HK$3.58m
  • Kam Wah Chow (56yo)

    Executive Director

    • Compensation: HK$1.59m
  • Catherine Lee (51yo)

    Executive Director

    • Compensation: HK$1.55m
  • Siu King Leung

    Company Secretary

    • Tenure: 1.2yrs

Board Members

  • Raymond Or (70yo)

    Chairman of the Board

    • Tenure: 7.3yrs
    • Compensation: HK$15.64m
  • Alexander Chow (72yo)

    Independent Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$200.00k
  • Ka Lok Sue (54yo)

    CEO & Executive Director

    • Tenure: 4.6yrs
    • Compensation: HK$3.58m
  • Kam Wah Chow (56yo)

    Executive Director

    • Tenure: 12.0yrs
    • Compensation: HK$1.59m
  • Hoi Ying Leung (68yo)

    Independent Non-Executive Director

    • Tenure: 11.8yrs
    • Compensation: HK$150.00k
  • Yin Fan Ma (55yo)

    Independent Non-Executive Director

    • Tenure: 11.8yrs
    • Compensation: HK$200.00k
  • Catherine Lee (51yo)

    Executive Director

    • Tenure: 4.4yrs
    • Compensation: HK$1.55m

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$1.053b
  • Shares outstanding: 16.99b
  • Website: Click here

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 Am ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/23 12:44
End of Day Share Price2019/07/23 00:00
Earnings2018/12/31
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.