Green Future Food Hydrocolloid Marine Science (SEHK:1084) - Share price, News & Analysis

Q: What is the Fair Price of 1084 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1084 (HK$3.1) is trading above our estimate of [[fair value]] (HK$0.77)

1084 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	4/6
Financial Health	4/6
Dividends	0/6

1084 Stock Overview

Green Future Food Hydrocolloid Marine Science Company Limited produces and sells seaweed-based and plant-based hydrocolloid in the People's Republic of China and internationally.

Rewards

Earnings have grown 4% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over the past 3 months

Shareholders have been diluted in the past year

Green Future Food Hydrocolloid Marine Science Competitors

China Boton Group

SEHK:3318

HK$3.5b

Tiande Chemical Holdings

SEHK:609

HK$2.2b

Tsaker New Energy Tech

SEHK:1986

HK$1.4b

Global New Material International Holdings

SEHK:6616

HK$4.8b

Price History & Performance

Summary of all time highs, changes and price drops for Green Future Food Hydrocolloid Marine Science
Historical stock prices
Current Share Price	HK$3.10
52 Week High	HK$4.85
52 Week Low	HK$1.03
Beta	-0.43
1 Month Change	7.27%
3 Month Change	-12.68%
1 Year Change	174.34%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	129.63%

Shareholder Returns

	1084	HK Chemicals	HK Market
7D	-9.1%	1.6%	-0.05%
1Y	174.3%	-38.5%	-22.0%

Return vs Industry: 1084 exceeded the Hong Kong Chemicals industry which returned -38.5% over the past year.

Return vs Market: 1084 exceeded the Hong Kong Market which returned -22% over the past year.

Price Volatility

Is 1084's price volatile compared to industry and market?
1084 volatility
1084 Average Weekly Movement	15.4%
Chemicals Industry Average Movement	6.6%
Market Average Movement	6.5%
10% most volatile stocks in HK Market	12.6%
10% least volatile stocks in HK Market	3.2%

Stable Share Price: 1084 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: 1084's weekly volatility has increased from 10% to 15% over the past year.

About the Company

Founded	Employees	CEO	Website
2001	1,177	Kam Chung Chan	https://www.greenfreshfood.com

Green Future Food Hydrocolloid Marine Science Company Limited produces and sells seaweed-based and plant-based hydrocolloid in the People's Republic of China and internationally. The company offers hydrocolloid products, including agar-agar, carrageenan, konjac gum, and related blended products for food producing and processing, and trading companies. Its products are used in dairy products, pet and bakery products, sauces, beverages, confectioneries, meat products, jellies, and desserts, as well as non-food applications, such as air-fresheners.

Green Future Food Hydrocolloid Marine Science Fundamentals Summary

How do Green Future Food Hydrocolloid Marine Science's earnings and revenue compare to its market cap?
1084 fundamental statistics
Market Cap	HK$2.71b
Earnings (TTM)	HK$103.62m
Revenue (TTM)	HK$1.16b

24.7x

P/E Ratio

2.2x

P/S Ratio

Is 1084 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1084 income statement (TTM)
Revenue	HK$1.16b
Cost of Revenue	HK$892.71m
Gross Profit	HK$270.43m
Other Expenses	HK$166.81m
Earnings	HK$103.62m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 30, 2022

Earnings per share (EPS)	0.13
Gross Margin	23.25%
Net Profit Margin	8.91%
Debt/Equity Ratio	71.5%

How did 1084 perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

32%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 1084 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1084?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1084. This is calculated by dividing 1084's market cap by their current preferred multiple.
What is 1084's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$2.71b

1084 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	2.8x
Enterprise Value/EBITDA	15.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 1084's PE Ratio compare to its peers?

1084 PE Ratio vs Peers

The above table shows the PE ratio for 1084 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	13.1x
3318 China Boton Group	15.9x	n/a	HK$3.5b
609 Tiande Chemical Holdings	4.9x	n/a	HK$2.2b
1986 Tsaker New Energy Tech	5.3x	n/a	HK$1.4b
6616 Global New Material International Holdings	25.6x	n/a	HK$4.8b
1084 Green Future Food Hydrocolloid Marine Science	24.7x	n/a	HK$2.7b

Price-To-Earnings vs Peers: 1084 is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the peer average (13.1x).

Price to Earnings Ratio vs Industry

How does 1084's PE Ratio compare vs other companies in the HK Chemicals Industry?

Price-To-Earnings vs Industry: 1084 is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the Hong Kong Chemicals industry average (5.8x)

Price to Earnings Ratio vs Fair Ratio

What is 1084'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.

1084 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1084's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 1084 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1084 (HK$3.1) is trading above our estimate of fair value (HK$0.77)

Significantly Below Fair Value: 1084 is trading above our estimate of fair value.

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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Future Growth

How is Green Future Food Hydrocolloid Marine Science forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

28.1%

Forecasted Materials 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 Green Future Food Hydrocolloid Marine Science 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.

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Check out Green Future Food Hydrocolloid Marine Science's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
Green Future Food Hydrocolloid Marine Science competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Green Future Food Hydrocolloid Marine Science performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

4.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1084 has high quality earnings.

Growing Profit Margin: 1084's current net profit margins (8.9%) are higher than last year (7.9%).

Past Earnings Growth Analysis

Earnings Trend: 1084's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: 1084's earnings growth over the past year (50.4%) exceeds its 5-year average (4% per year).

Earnings vs Industry: 1084 earnings growth over the past year (50.4%) underperformed the Chemicals industry 50.4%.

Return on Equity

High ROE: 1084's Return on Equity (12.1%) is considered low.

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Financial Health

How is Green Future Food Hydrocolloid Marine Science's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1084's short term assets (HK$1.0B) exceed its short term liabilities (HK$703.2M).

Long Term Liabilities: 1084's short term assets (HK$1.0B) exceed its long term liabilities (HK$134.4M).

Debt to Equity History and Analysis

Debt Level: 1084's net debt to equity ratio (55.3%) is considered high.

Reducing Debt: 1084's debt to equity ratio has reduced from 234.5% to 71.5% over the past 5 years.

Debt Coverage: 1084's debt is not well covered by operating cash flow (1.5%).

Interest Coverage: 1084's interest payments on its debt are well covered by EBIT (7.3x coverage).

Balance Sheet

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Dividend

What is Green Future Food Hydrocolloid Marine Science current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.29%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1084's dividend (1.29%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.87%).

High Dividend: 1084's dividend (1.29%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.25%).

Stability and Growth of Payments

Stable Dividend: 1084 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1084 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 1084 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: Insufficient data to calculate cash payout ratio to determine if its dividend payments are covered by cash flows.

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Management

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

3.9yrs

Average board tenure

CEO

Kam Chung Chan (51 yo)

no data

Tenure

Mr. Kam Chung Chan is the Executive Chairman and Chief Executive Officer at Green Future Food Hydrocolloid Marine Science Company Limited since July 3, 2015. Prior to joining, Mr. Chan was a director and d...

Board Members

Experienced Board: 1084's board of directors are considered experienced (3.9 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 2%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/12 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31