SEHK:3838

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Executive Summary

China Starch Holdings Limited, an investment holding company, manufactures and sells cornstarch, lysine, starch-based sweetener, modified starch, and ancillary corn-based and corn-refined products in the People’s Republic of China.


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3838 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

3838

2.8%

HK Food

4.0%

HK Market


1 Year Return

-20.9%

3838

-2.8%

HK Food

-4.9%

HK Market

Return vs Industry: 3838 underperformed the Hong Kong Food industry which returned -3.5% over the past year.

Return vs Market: 3838 underperformed the Hong Kong Market which returned -6.6% over the past year.


Shareholder returns

3838IndustryMarket
7 Day-1.5%2.8%4.0%
30 Day21.7%5.4%5.3%
90 Day11.2%13.6%13.3%
1 Year-16.2%-20.9%0.3%-2.8%-1.4%-4.9%
3 Year-27.0%-38.3%47.6%35.6%7.7%-3.5%
5 Year-11.8%-27.5%14.1%1.9%7.1%-10.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

7.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3838 (HK$0.13) is trading above our estimate of fair value (HK$0.11)

Significantly Below Fair Value: 3838 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3838 is good value based on its PE Ratio (7.3x) compared to the Food industry average (11.3x).

PE vs Market: 3838 is good value based on its PE Ratio (7.3x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3838's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3838 is good value based on its PB Ratio (0.2x) compared to the HK Food industry average (0.9x).


Next Steps

Future Growth

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

13.2%

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 Starch 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 Starch Holdings performed over the past 5 years?

14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3838 has a high level of non-cash earnings.

Growing Profit Margin: 3838's current net profit margins (1.4%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: 3838's earnings have grown by 14.9% per year over the past 5 years.

Accelerating Growth: 3838's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3838 had negative earnings growth (-58.1%) over the past year, making it difficult to compare to the Food industry average (20%).


Return on Equity

High ROE: 3838's Return on Equity (3.3%) is considered low.


Next Steps

Financial Health

How is China Starch Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3838's short term assets (CN¥1.8B) exceed its short term liabilities (CN¥1.1B).

Long Term Liabilities: 3838's short term assets (CN¥1.8B) exceed its long term liabilities (CN¥388.4M).


Debt to Equity History and Analysis

Debt Level: 3838's debt to equity ratio (5.1%) is considered satisfactory.

Reducing Debt: 3838's debt to equity ratio has reduced from 14.1% to 5.1% over the past 5 years.

Debt Coverage: 3838's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 3838 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

4.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3838's dividend (4.78%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.39%).

High Dividend: 3838's dividend (4.78%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.84%).


Stability and Growth of Payments

Stable Dividend: 3838's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3838's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.3%), 3838's dividend payments are well 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?

12.8yrs

Average board tenure


CEO

Shijun Gao (52yo)

no data

Tenure

CN¥525,000

Compensation

Mr. Shijun Gao serves as Chief Executive Officer of China Starch Holdings Limited. Mr. Gao is principally responsible for overseeing China Starch Holdings Limited's operations and business management. He h ...


CEO Compensation Analysis

Compensation vs Market: Shijun's total compensation ($USD74.30K) is below average for companies of similar size in the Hong Kong market ($USD229.14K).

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


Board Members

NamePositionTenureCompensationOwnership
Qixiang Tian
Executive Chairman of the Boardno dataCN¥480.00kno data
Shijun Gao
CEO & Executive Directorno dataCN¥525.00kno data
Yingquan Yu
Executive Director13.33yrsCN¥410.00kno data
Xianggang Liu
Executive Director12.83yrsCN¥485.00kno data
Kwai Wa Yue
Independent Non-Executive Director12.83yrsCN¥97.00kno data
Mingdao Sun
Independent Non-Executive Director6.83yrsCN¥50.00kno data
Qiang Hua
Independent Non-Executive Director4.17yrsCN¥50.00kno data

12.8yrs

Average Tenure

52yo

Average Age

Experienced Board: 3838's board of directors are seasoned and experienced ( 12.8 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 Starch Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Starch Holdings Limited
  • Ticker: 3838
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$749.487m
  • Shares outstanding: 6.00b
  • Website: https://www.chinastarch.com.hk

Number of Employees


Location

  • China Starch Holdings Limited
  • Tower 1
  • Times Square
  • Causeway Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3838SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2007
46C1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2007

Biography

China Starch Holdings Limited, an investment holding company, manufactures and sells cornstarch, lysine, starch-based sweetener, modified starch, and ancillary corn-based and corn-refined products in the People’s Republic of China. The company operates through two segments, Upstream Products, and Fermented and Downstream Products. It also researches, develops, manufactures, and sells food additives, feeds, amino acids, and related products; and glucose, maltose, dextrin, animal feed additives, food-grade enzymes, biobased materials, and related products. The company was incorporated in 2006 and is headquartered in Causeway Bay, Hong Kong. China Starch Holdings Limited is a subsidiary of Merry Boom Group Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 12:44
End of Day Share Price2020/07/03 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.