China Starch Holdings Valuation

Q: What is the Fair Price of 3838 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

3838 (HK$0.17) is trading below our estimate of [[fair value]] (HK$0.18)

Is 3838 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 3838 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3838 (HK$0.17) is trading below our estimate of fair value (HK$0.18)

Significantly Below Fair Value: 3838 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3838?

Key metric: As 3838 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 3838. This is calculated by dividing 3838's market cap by their current earnings.
What is 3838's PE Ratio?
PE Ratio	2.7x
Earnings	CN¥360.37m
Market Cap	CN¥943.90m

3838 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.02x
Enterprise Value/EBITDA	0.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 3838's PE Ratio compare to its peers?

The above table shows the PE ratio for 3838 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	15.3x
1837 Natural Food International Holding	5.9x	n/a	HK$1.0b
829 Shenguan Holdings (Group)	22x	n/a	HK$920.7m
374 Four Seas Mercantile Holdings	27.7x	n/a	HK$960.5m
2317 Vedan International (Holdings)	5.7x	n/a	HK$746.1m
3838 China Starch Holdings	2.7x	n/a	HK$1.0b

Price-To-Earnings vs Peers: 3838 is good value based on its Price-To-Earnings Ratio (2.7x) compared to the peer average (15.3x).

Price to Earnings Ratio vs Industry

How does 3838's PE Ratio compare vs other companies in the HK Food Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap
809 Global Bio-chem Technology Group	0.2x	n/a	US$93.78m
3889 Global Sweeteners Holdings	2.4x	n/a	US$28.18m

No more companies available in this PE range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 3838 is good value based on its Price-To-Earnings Ratio (2.7x) compared to the Hong Kong Food industry average (14x).

Price to Earnings Ratio vs Fair Ratio

What is 3838's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3838 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 3838's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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