SEHK:606

Stock Analysis Report

China Agri-Industries Holdings

Executive Summary

China Agri-Industries Holdings Limited, an investment holding company, engages in the production, processing, and distribution of agricultural products in Mainland China.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 606 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

606

2.0%

HK Food

3.0%

HK Market


1 Year Return

55.1%

606

-9.8%

HK Food

-21.1%

HK Market

Return vs Industry: 606 exceeded the Hong Kong Food industry which returned -11.4% over the past year.

Return vs Market: 606 exceeded the Hong Kong Market which returned -24% over the past year.


Shareholder returns

606IndustryMarket
7 Day0%2.0%3.0%
30 Day0.5%-6.6%-9.1%
90 Day2.7%-4.1%-14.7%
1 Year58.8%55.1%-7.4%-9.8%-18.2%-21.1%
3 Year26.5%11.8%31.2%21.4%-2.0%-11.8%
5 Year58.1%39.8%-1.5%-11.7%-16.4%-29.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Agri-Industries Holdings undervalued compared to its fair value and its price relative to the market?

21.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 606 (HK$4.25) is trading above our estimate of fair value (HK$1.97)

Significantly Below Fair Value: 606 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 606 is poor value based on its PE Ratio (21.4x) compared to the Food industry average (12.2x).

PE vs Market: 606 is poor value based on its PE Ratio (21.4x) compared to the Hong Kong market (8.6x).


Price to Earnings Growth Ratio

PEG Ratio: 606 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 606 is overvalued based on its PB Ratio (0.8x) compared to the HK Food industry average (0.7x).


Next Steps

Future Growth

How is China Agri-Industries Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

23.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 606's forecast earnings growth (23.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 606's earnings (23.7% per year) are forecast to grow faster than the Hong Kong market (12.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 606's revenue (7.2% per year) is forecast to grow slower than the Hong Kong market (9.2% per year).

High Growth Revenue: 606's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 606's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has China Agri-Industries Holdings performed over the past 5 years?

50.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 606 has high quality earnings.

Growing Profit Margin: 606's current net profit margins (0.9%) are lower than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: 606's earnings have grown significantly by 50.7% per year over the past 5 years.

Accelerating Growth: 606's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 606 had negative earnings growth (-34.1%) over the past year, making it difficult to compare to the Food industry average (1.7%).


Return on Equity

High ROE: 606's Return on Equity (3.1%) is considered low.


Next Steps

Financial Health

How is China Agri-Industries Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 606's short term assets (HK$39.9B) exceed its short term liabilities (HK$30.6B).

Long Term Liabilities: 606's short term assets (HK$39.9B) exceed its long term liabilities (HK$1.6B).


Debt to Equity History and Analysis

Debt Level: 606's debt to equity ratio (55.3%) is considered high.

Reducing Debt: 606's debt to equity ratio has reduced from 133.1% to 55.3% over the past 5 years.

Debt Coverage: 606's debt is well covered by operating cash flow (28.3%).

Interest Coverage: 606's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is China Agri-Industries Holdings's current dividend yield, its reliability and sustainability?

1.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 606's dividend (1.34%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.67%).

High Dividend: 606's dividend (1.34%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.71%).


Stability and Growth of Payments

Stable Dividend: 606 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 606 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 606 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 606'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?

4.1yrs

Average management tenure


CEO

Zhen Wang (58yo)

0.92

Tenure

Mr. Zhen Wang serves as Executive Director and Managing Director at China Agri-Industries Holdings Ltd since April 15, 2019. He served as General Manager of Wheat Processing Division of China Agri-Industri ...


Leadership Team

NamePositionTenureCompensationOwnership
Guanghong Xu
Executive Director1.17yrsno datano data
Zhen Wang
Executive Director & MD0.92yrno datano data
Lijun Yang
Chief Financial Officer1.67yrsno datano data
Xiang Gao
General Manager of Human Resources Departmentno datano datano data
Jian Hua
VP, GM of Brewing Materials Division & Executive Director0.92yrno datano data
Pui Fan Look
Company Secretary9.42yrsno datano data

4.1yrs

Average Tenure

48.5yo

Average Age

Experienced Management: 606's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Guanghong Xu
Executive Director1.17yrsno datano data
Zhen Wang
Executive Director & MD0.92yrno datano data
Jian Hua
VP, GM of Brewing Materials Division & Executive Director0.92yrno datano data
Patrick Vizzone
Independent Non-Executive Director12.75yrsHK$420.00kno data
Wai Lam
Independent Non-Executive Director13.17yrsHK$420.00kno data
Richeng Luan
Chairman of the Board1.25yrsno datano data
Teck Ong
Independent Non-Executive Director5.08yrsHK$420.00kno data
Peng Jia
Non-Executive Director3.17yrsno datano data
Qingguo Meng
Non-Executive Director2.58yrsno datano data

2.6yrs

Average Tenure

58yo

Average Age

Experienced Board: 606's board of directors are not considered experienced ( 2.6 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: 606 insiders have only sold shares 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

China Agri-Industries Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Agri-Industries Holdings Limited
  • Ticker: 606
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$22.358b
  • Shares outstanding: 5.26b
  • Website: https://www.chinaagri.com

Number of Employees


Location

  • China Agri-Industries Holdings Limited
  • COFCO Tower
  • 31st Floor
  • Causeway Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
606SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2007
IHADB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2007
606SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2007
606SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2007

Biography

China Agri-Industries Holdings Limited, an investment holding company, engages in the production, processing, and distribution of agricultural products in Mainland China. It operates through Oilseeds Processing, Rice Processing and Trading, Wheat Processing, and Brewing Materials segments. The Oilseeds Processing segment is involved in the extraction, refining, and trading of edible oil and related products. This segment offers soybean oil, palm oil, rapeseed oil, and oilseed meals under the Fortune, Fuzhanggui, Sihai, Xiyingying, and Guhua brands. The Rice Processing and Trading segment engages in the processing and trading of rice under the Fortune, Jinying, Five Lakes, Golden Terra, Xin, and Donghai Mingzhu names. The Wheat Processing segment produces and sells flour, noodles, and bread products under the Fortune and Xiangxue brands. The Brewing Materials segment processes and trades in malt. The company also provides management services, as well as exports its products. The company was formerly known as Sino Vision Hong Kong Limited and changed its name to China Agri-Industries Holdings Limited in January 2007. China Agri-Industries Holdings Limited was incorporated in 2006 and is based in Causeway Bay, Hong Kong. China Agri-Industries Holdings Limited is a subsidiary of Wide Smart Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/23 12:47
End of Day Share Price2020/03/09 00:00
Earnings2019/06/30
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.