SEHK:43

Stock Analysis Report

Executive Summary

C.P. Pokphand Co. Ltd., an investment holding company, manufactures and sells animal feed products in the People’s Republic of China and the Socialist Republic of Vietnam.


Snowflake Analysis

Proven track record with mediocre balance sheet.

Share Price & News

How has C.P. Pokphand's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 43 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

43

2.0%

HK Food

2.7%

HK Market


1 Year Return

-13.2%

43

-6.9%

HK Food

-19.8%

HK Market

Return vs Industry: 43 underperformed the Hong Kong Food industry which returned -9.8% over the past year.

Return vs Market: 43 exceeded the Hong Kong Market which returned -21.1% over the past year.


Shareholder returns

43IndustryMarket
7 Day-3.3%2.0%2.7%
30 Day-10.6%-3.4%-7.2%
90 Day-10.6%-0.9%-12.1%
1 Year-8.9%-13.2%-4.4%-6.9%-16.9%-19.8%
3 Year-7.5%-16.9%36.5%26.2%0.9%-9.3%
5 Year-43.1%-56.0%4.7%-6.1%-12.6%-26.7%

Price Volatility Vs. Market

How volatile is C.P. Pokphand's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is C.P. Pokphand undervalued compared to its fair value and its price relative to the market?

5.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 43 (HK$0.59) is trading above our estimate of fair value (HK$0.29)

Significantly Below Fair Value: 43 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 43 is good value based on its PE Ratio (5.6x) compared to the Food industry average (12.1x).

PE vs Market: 43 is good value based on its PE Ratio (5.6x) compared to the Hong Kong market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: 43's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 43 is overvalued based on its PB Ratio (1.3x) compared to the HK Food industry average (0.8x).


Next Steps

Future Growth

How is C.P. Pokphand forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 43's earnings are forecast to decline over the next 3 years (-6.4% per year).

Earnings vs Market: 43's earnings are forecast to decline over the next 3 years (-6.4% per year).

High Growth Earnings: 43's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 43's revenue (2.8% per year) is forecast to grow slower than the Hong Kong market (9.8% per year).

High Growth Revenue: 43's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 43's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has C.P. Pokphand performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 43 has a large one-off gain of $102.9M impacting its December 31 2019 financial results.

Growing Profit Margin: 43's current net profit margins (5%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: 43's earnings have declined by -1.3% per year over the past 5 years.

Accelerating Growth: 43's earnings growth over the past year (22.8%) exceeds its 5-year average (-1.3% per year).

Earnings vs Industry: 43 earnings growth over the past year (22.8%) exceeded the Food industry 19.2%.


Return on Equity

High ROE: 43's Return on Equity (23.8%) is considered high.


Next Steps

Financial Health

How is C.P. Pokphand's financial position?


Financial Position Analysis

Short Term Liabilities: 43's short term assets ($2.3B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: 43's short term assets ($2.3B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: 43's debt to equity ratio (88.2%) is considered high.

Reducing Debt: 43's debt to equity ratio has increased from 81.6% to 88.2% over the past 5 years.

Debt Coverage: 43's debt is not well covered by operating cash flow (17.3%).

Interest Coverage: 43's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Next Steps

Dividend

What is C.P. Pokphand's current dividend yield, its reliability and sustainability?

5.40%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 43's dividend (5.4%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.71%).

High Dividend: 43's dividend (5.4%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.21%).


Stability and Growth of Payments

Stable Dividend: 43's dividend payments have been volatile in the past 10 years.

Growing Dividend: 43's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.1%), 43's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 43 is not forecast to pay a dividend in 3 years.


Next Steps

Management

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

9.3yrs

Average management tenure


CEO

C.P. Pokphand has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Soopakij Chearavanont
Chairman of the Boardno datano datano data
Suphachai Chearavanont
Vice Chairman of the Board0.92yrno datano data
Adirek Sripratak
Vice Chairman8yrsno datano data
Shanlin Bai
CEO of China Area & Executive Director10.17yrsUS$1.31mno data
Sooksunt Jiumjaiswanglerg
CEO of Vietnam Area & Executive Director8.5yrsno datano data
Arunee Wacharananan
Executive Director8yrsno datano data
Jianping Yu
Executive Director3.25yrsUS$1.28mno data
Bo Chang
Chief Financial Officer9.25yrsno datano data
Narong Chearavanont
Executive Director0.83yrno datano data
Wing Lau
Financial Controllerno datano datano data

9.3yrs

Average Tenure

56.5yo

Average Age

Experienced Management: 43's management team is seasoned and experienced (9.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Soopakij Chearavanont
Chairman of the Boardno datano datano data
Suphachai Chearavanont
Vice Chairman of the Board0.92yrno datano data
Adirek Sripratak
Vice Chairman8yrsno datano data
Shanlin Bai
CEO of China Area & Executive Director10.17yrsUS$1.31mno data
Sooksunt Jiumjaiswanglerg
CEO of Vietnam Area & Executive Director8.5yrsno datano data
Arunee Wacharananan
Executive Director8yrsno datano data
Jianping Yu
Executive Director3.25yrsUS$1.28mno data
Narong Chearavanont
Executive Director0.83yrno datano data
Sakda Thanitcul
Independent Non-Executive Director11.58yrsUS$31.00kno data
Vinai Vittavasgarnvej
Independent Non-Executive Director7.33yrsUS$31.00kno data

8.0yrs

Average Tenure

60yo

Average Age

Experienced Board: 43's board of directors are considered experienced (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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

C.P. Pokphand Co. Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: C.P. Pokphand Co. Ltd.
  • Ticker: 43
  • Exchange: SEHK
  • Founded: 1988
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$15.200b
  • Shares outstanding: 25.33b
  • Website: https://www.cpp.hk

Number of Employees


Location

  • C.P. Pokphand Co. Ltd.
  • Far East Finance Centre
  • 21st Floor
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPKP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
43SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
CPQADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
CPKP.YOTCPK (Pink Sheets LLC)SPON ADR NEWUSUSDAug 1992

Biography

C.P. Pokphand Co. Ltd., an investment holding company, manufactures and sells animal feed products in the People’s Republic of China and the Socialist Republic of Vietnam. The company operates through three segments: China Agri-Food, Vietnam Agri-Food, and Investment and Property Holding. It is involved in breeding, farming, and selling livestock and aquatic animals; manufacturing and selling value-added processed food products; slaughtering and selling pork meat products; and manufacturing and trading chicken meat products. The company also offers swine, sausages, fish, and shrimp feed products. In addition, it is involved in leasing properties. The company also exports its products. C.P. Pokphand Co. Ltd. was founded in 1988 and is based in Hong Kong, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 13:11
End of Day Share Price2020/04/07 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.