SEHK:1676

Stock Analysis Report

Executive Summary

China Shenghai Food Holdings Company Limited, an investment holding company, engages in the packaging and sale of seafood products in the Peoples’ Republic of China.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1676's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-19.0%

1676

-0.2%

HK Food

0.2%

HK Market


1 Year Return

-62.8%

1676

-11.2%

HK Food

-22.0%

HK Market

Return vs Industry: 1676 underperformed the Hong Kong Food industry which returned -11.2% over the past year.

Return vs Market: 1676 underperformed the Hong Kong Market which returned -22% over the past year.


Shareholder returns

1676IndustryMarket
7 Day-19.0%-0.2%0.2%
30 Day-44.1%-6.6%-10.8%
90 Day-35.7%-5.4%-16.5%
1 Year-62.8%-62.8%-8.9%-11.2%-19.1%-22.0%
3 Yearn/a28.7%19.1%-3.7%-13.4%
5 Yearn/a-1.9%-11.7%-15.2%-28.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1676's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1676's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1676 is good value based on its PE Ratio (2.4x) compared to the Food industry average (11.9x).

PE vs Market: 1676 is good value based on its PE Ratio (2.4x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1676's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1676 is good value based on its PB Ratio (0.2x) compared to the HK Food industry average (0.8x).


Next Steps

Future Growth

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

13.1%

Forecasted Food, Beverage & Tobacco 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 Shenghai Food 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 Shenghai Food Holdings performed over the past 5 years?

3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1676 has high quality earnings.

Growing Profit Margin: 1676's current net profit margins (6.5%) are lower than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: 1676's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: 1676's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1676 had negative earnings growth (-59.6%) over the past year, making it difficult to compare to the Food industry average (17.9%).


Return on Equity

High ROE: 1676's Return on Equity (6.5%) is considered low.


Next Steps

Financial Health

How is China Shenghai Food Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1676's short term assets (CN¥432.2M) exceed its short term liabilities (CN¥28.0M).

Long Term Liabilities: 1676's short term assets (CN¥432.2M) exceed its long term liabilities (CN¥3.1M).


Debt to Equity History and Analysis

Debt Level: 1676 is debt free.

Reducing Debt: 1676 has no debt compared to 5 years ago when its debt to equity ratio was 23.1%.

Debt Coverage: 1676 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1676 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1676 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1676's debt is covered by short term assets (assets are 9.7327291547104E+17x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1676's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1676'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 1676's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1676'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 1676'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?

4.0yrs

Average management tenure


CEO

Rongru Liu (51yo)

0.67

Tenure

CN¥1,079,000

Compensation

Mr. Liu Rongru is Chief Executive Officer of China Shenghai Food Holdings Company Limited since August 6, 2019 and has been its Joint Chairman since January 14, 2020. Mr. Liu served as Chairman of China Sh ...


CEO Compensation Analysis

Compensation vs Market: Rongru's total compensation ($USD152.17K) is below average for companies of similar size in the Hong Kong market ($USD226.90K).

Compensation vs Earnings: Rongru's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rongru Liu
Joint-Chairman & CEO0.67yrCN¥1.08m52.5% CN¥42.5m
Dehua Jiang
Consultantno dataCN¥1.03mno data
Yiyang Lin
Chief Sales Officerno datano datano data
Zhengping Liu
Chief Procurement Officer10.67yrsno datano data
Qingsen Liu
Head of Productionno datano datano data
Jiayin Li
Executive Director0.58yrno datano data
Wai Lun Wong
Company Secretary4yrsno datano data

4.0yrs

Average Tenure

42yo

Average Age

Experienced Management: 1676's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rongru Liu
Joint-Chairman & CEO0.67yrCN¥1.08m52.5% CN¥42.5m
Jiayin Li
Executive Director0.58yrno datano data
Dajin Liu
Independent Non-Executive Director2.83yrsCN¥87.00kno data
Dongfan Li
Joint Chairman0.25yrno datano data
Wai Ching Pang
Independent Non-Executive Director0.50yrno datano data
Junting Liu
Independent Non-Executive Director0.25yrno datano data

0.4yrs

Average Tenure

34.5yo

Average Age

Experienced Board: 1676's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.


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 Shenghai Food Holdings Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Shenghai Food Holdings Company Limited
  • Ticker: 1676
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$81.000m
  • Shares outstanding: 1.00b
  • Website: https://www.xmwofan.com

Number of Employees


Location

  • China Shenghai Food Holdings Company Limited
  • Huli Industrial Park
  • 5th Floor, Block 5
  • Xiamen
  • Fujian Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1676SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2017

Biography

China Shenghai Food Holdings Company Limited, an investment holding company, engages in the packaging and sale of seafood products in the Peoples’ Republic of China. The company offers dried seafood, algae and fungi, and frozen seafood products, as well as seafood snacks under the Wofan brand. It sells its products to supermarkets, trading companies, and convenience stores, as well as other sales channels, such as food companies, gift stores, and e-commerce retailers. The company was formerly known as Oceania Food (China) Holdings Company Limited and changed its name to China Shenghai Food Holdings Company Limited in October 2016. China Shenghai Food Holdings Company Limited was founded in 2005 and is headquartered in Xiamen, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 14:11
End of Day Share Price2020/04/03 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.