SEHK:8120

Stock Analysis Report

China Demeter Financial Investments

Executive Summary

China Demeter Financial Investments Limited, an investment holding company, engages in the development, manufacturing, and distribution of feedstock products in the People’s Republic of China.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has China Demeter Financial Investments's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8120 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

8120

-0.2%

HK Food

0.2%

HK Market


1 Year Return

-21.1%

8120

-11.2%

HK Food

-22.0%

HK Market

Return vs Industry: 8120 underperformed the Hong Kong Food industry which returned -10.7% over the past year.

Return vs Market: 8120 exceeded the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

8120IndustryMarket
7 Day-3.6%-0.2%0.2%
30 Day-10.2%-6.6%-10.8%
90 Day-8.6%-5.4%-16.5%
1 Year-21.1%-21.1%-8.9%-11.2%-19.1%-22.0%
3 Year-68.8%-68.8%28.7%19.1%-3.7%-13.4%
5 Year-93.1%-93.1%-1.9%-11.7%-15.2%-28.8%

Price Volatility Vs. Market

How volatile is China Demeter Financial Investments's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Demeter Financial Investments undervalued compared to its fair value and its price relative to the market?

0.3x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8120's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8120's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8120 is unprofitable, so we can't compare its PE Ratio to the Food industry average.

PE vs Market: 8120 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8120's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8120 is good value based on its PB Ratio (0.3x) compared to the HK Food industry average (0.8x).


Next Steps

Future Growth

How is China Demeter Financial Investments 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 Demeter Financial Investments 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 Demeter Financial Investments performed over the past 5 years?

-42.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8120 is currently unprofitable.

Growing Profit Margin: 8120 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8120 is unprofitable, and losses have increased over the past 5 years at a rate of -42.7% per year.

Accelerating Growth: Unable to compare 8120's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8120 is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (17.9%).


Return on Equity

High ROE: 8120 has a negative Return on Equity (-76.16%), as it is currently unprofitable.


Next Steps

Financial Health

How is China Demeter Financial Investments's financial position?


Financial Position Analysis

Short Term Liabilities: 8120's short term assets (HK$147.9M) exceed its short term liabilities (HK$51.2M).

Long Term Liabilities: 8120's short term assets (HK$147.9M) exceed its long term liabilities (HK$17.5M).


Debt to Equity History and Analysis

Debt Level: 8120 is debt free.

Reducing Debt: 8120 has no debt compared to 5 years ago when its debt to equity ratio was 1.7%.


Balance Sheet

Inventory Level: 8120 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 8120's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if 8120 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 8120 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is China Demeter Financial Investments's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8120's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8120'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 8120's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8120'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 8120'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?

4.5yrs

Average management tenure


CEO

Paul Ng (48yo)

3.42s

Tenure

HK$1,818,000

Compensation

Mr. Man Chun Ng, also Known as Paul, has been Chairman of the Board at China Demeter Investments Limited since June 14, 2019. Mr. Ng has been the Chief Executive Officer and Executive Director of China D ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD234.49K) is about average for companies of similar size in the Hong Kong market ($USD228.57K).

Compensation vs Earnings: Paul's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Man Chun Ng
Chairman & CEO3.42yrsHK$1.82m0.63% HK$254.7k
Ting Ho Ng
Compliance Officer & Executive Director4.17yrsHK$1.32m0.63% HK$254.7k
Chun Kei Lam
Executive Director6.17yrsHK$808.00kno data
Kim Yem Tan
Operations Director10yrsno datano data
Lai Ping Chan
Accounting Manager & Company Secretary5.67yrsno datano data
Soh Lay Tan
Human Resource & Administrative Directorno datano datano data

4.5yrs

Average Tenure

46yo

Average Age

Experienced Management: 8120's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Man Chun Ng
Chairman & CEO3.42yrsHK$1.82m0.63% HK$254.7k
Ting Ho Ng
Compliance Officer & Executive Director4.17yrsHK$1.32m0.63% HK$254.7k
Chun Kei Lam
Executive Director6.17yrsHK$808.00kno data
Kenneth Hung
Independent Non-Executive Director5.5yrsHK$120.00kno data
Hin Hang Chan
Independent Non-Executive Director2.42yrsHK$120.00kno data
Liang Hsien Yum
Independent Non-Executive Director2.42yrsHK$120.00kno data

3.3yrs

Average Tenure

41.5yo

Average Age

Experienced Board: 8120's board of directors are considered experienced (3.3 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 been diluted in the past year, with total shares outstanding growing by 7.4%.


Top Shareholders

Company Information

China Demeter Financial Investments Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Demeter Financial Investments Limited
  • Ticker: 8120
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$40.553m
  • Shares outstanding: 153.03m
  • Website: https://www.chinademeter.com

Number of Employees


Location

  • China Demeter Financial Investments Limited
  • China Insurance Group Building
  • 10th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0OUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2001
8120SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2001

Biography

China Demeter Financial Investments Limited, an investment holding company, engages in the development, manufacturing, and distribution of feedstock products in the People’s Republic of China. The company operates through Agricultural, Money Lending, Financial Services, Securities Investment, Food and Beverage, Alcoholic Beverage Distribution, and Children education segments. It offers loan financing services to individuals and companies; advises and deals in securities; provides asset management services; and invests in listed and unlisted securities. In addition, the company distributes craft beer in Hong Kong and the Peoples Republic of China; and operates twelve restaurants in Hong Kong and Singapore. Additionally, it offers kindergarten and pre-school education services, as well as operates child care center. The company was formerly known as China Demeter Investments Limited and changed its name to China Demeter Financial Investments Limited in December 2016. China Demeter Financial Investments Limited was incorporated in 2000 and is headquartered in Central, Hong Kong. 


Company Analysis and Financial Data Status

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