SEHK:1986

Stock Analysis Report

Tsaker Chemical Group

Executive Summary

Tsaker Chemical Group Limited, an investment holding company, manufactures and sells dyes, agrochemicals, pigment intermediates, and other fine chemicals.

Snowflake

Fundamentals

Flawless balance sheet with outstanding track record.

Share Price & News

How has Tsaker Chemical Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

9.8%

1986

1.1%

HK Chemicals

2.4%

HK Market


1 Year Return

-63.5%

1986

-27.8%

HK Chemicals

0.4%

HK Market

Return vs Industry: 1986 underperformed the Hong Kong Chemicals industry which returned -27.8% over the past year.

Return vs Market: 1986 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

1986IndustryMarket
7 Day9.8%1.1%2.4%
30 Day-15.2%-6.3%-2.6%
90 Day-38.3%-14.4%-5.6%
1 Year-62.5%-63.5%-22.5%-27.8%4.0%0.4%
3 Year-18.2%-21.6%-15.4%-28.3%15.1%3.5%
5 Yearn/a-11.3%-27.0%20.3%0.3%

Price Volatility Vs. Market

How volatile is Tsaker Chemical Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tsaker Chemical Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1986 (HK$1.9) is trading below our estimate of fair value (HK$15.04)

Significantly Undervalued: 1986 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1986 is good value based on its PE Ratio (3.5x) compared to the Chemicals industry average (6.9x).

PE vs Market: 1986 is good value based on its PE Ratio (3.5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 1986's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1986 is overvalued based on its PB Ratio (1.1x) compared to the HK Chemicals industry average (0.8x).


Next Steps

Future Growth

How is Tsaker Chemical Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1986's earnings are forecast to decline over the next 3 years (-10.9% per year).

Earnings vs Market: 1986's earnings are forecast to decline over the next 3 years (-10.9% per year).

High Growth Earnings: 1986's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 1986's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1986's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 1986's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tsaker Chemical Group performed over the past 5 years?

28.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1986's earnings have grown significantly by 28.8% per year over the past 5 years.

Accelerating Growth: 1986's earnings growth over the past year (153.8%) exceeds its 5-year average (28.8% per year).

Earnings vs Industry: 1986 earnings growth over the past year (153.8%) exceeded the Chemicals industry 17.6%.


Return on Equity

High ROE: 1986's Return on Equity (30.6%) is considered high.


Return on Assets

ROA vs Industry: 1986 has a higher Return on Assets than the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: 1986 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Tsaker Chemical Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1986's short term assets (CN¥849.5M) exceeds its short term liabilities (CN¥807.5M)

Long Term Liabilities: 1986's short term assets (849.5M) exceeds its long term liabilities (45.5M)


Debt to Equity History and Analysis

Debt Level: 1986's debt to equity ratio (17.8%) is considered satisfactory

Reducing Debt: 1986's debt to equity ratio has reduced from 38.7% to 17.8% over the past 5 years.

Debt Coverage: 1986's debt is well covered by operating cash flow (168.2%).

Interest Coverage: 1986's interest payments on its debt are well covered by EBIT (37.1x coverage).


Balance Sheet

Inventory Level: 1986 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1986's debt is covered by short term assets (assets are 2.881610x debt).


Next Steps

Dividend

What is Tsaker Chemical Group's current dividend yield, its reliability and sustainability?

3.74%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%2.3%markettop25%6.3%industryaverage8.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1986's dividend (3.74%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1986's dividend (3.74%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).

Stable Dividend: Whilst dividend payments have been stable, 1986 has been paying a dividend for less than 10 years.

Growing Dividend: 1986's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.1%), 1986's dividend payments are thoroughly 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

What is the CEO of Tsaker Chemical Group's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Yi Ge (37yo)

5yrs

Tenure

CN¥1,537,000

Compensation

Mr. Yi Ge has been Chief Executive Officer and Executive Director at Tsaker Chemical Group Ltd. since October 29, 2014 and serves as its Chairman. Mr. Ge is responsible for overall business strategy and ma ...


CEO Compensation Analysis

Compensation vs. Market: Yi's total compensation ($USD217.53K) is about average for companies of similar size in the Hong Kong market ($USD281.84K).

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


Management Age and Tenure

3.6yrs

Average Tenure

36.5yo

Average Age

Experienced Management: 1986's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

42yo

Average Age

Experienced Board: 1986's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCN¥2,630,47612 Apr 19
China Huarong International Holdings Limited
EntityCompany
Shares620,000
Max PriceCN¥4.24
SellCN¥34,000,05508 Mar 19
Nh Tsiker
EntityCompany
Shares20,000,000
Max PriceCN¥1.70
SellCN¥25,365,01708 Mar 19
Nh Tsiker
EntityCompany
Shares10,000,000
Max PriceCN¥2.54
BuyCN¥3,063,33316 Jan 19
Yi Ge
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares2,337,000
Max PriceCN¥1.31
BuyCN¥3,882,60516 Jan 19
Yi Ge
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares2,988,000
Max PriceCN¥1.30
BuyCN¥14,805,60516 Jan 19
Yi Ge
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares12,338,000
Max PriceCN¥1.20

Ownership Breakdown


Management Team

  • Yi Ge (37yo)

    Chairman & CEO

    • Tenure: 5yrs
    • Compensation: CN¥1.54m
  • Suet Lun Leung (35yo)

    Company Secretary

    • Tenure: 2.2yrs
  • Qiang Shi (63yo)

    Chief Engineer

    • Tenure: 5.5yrs
    • Compensation: CN¥499.00k
  • Kun Bai (42yo)

    CFO & Executive Director

    • Tenure: 3.2yrs
    • Compensation: CN¥1.17m
  • Xue Yang (30yo)

    Joint Company Secretary

    • Tenure: 1.3yrs
  • Zhang Nan (36yo)

    Executive Director

    • Tenure: 0.8yrs

Board Members

  • Kenneth Ho (54yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: CN¥175.00k
  • Alain Fontaine (64yo)

    Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: CN¥175.00k
  • Yi Ge (37yo)

    Chairman & CEO

    • Tenure: 5yrs
    • Compensation: CN¥1.54m
  • Lin Zhu (45yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: CN¥175.00k
  • Miao Yu (42yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: CN¥175.00k
  • Kun Bai (42yo)

    CFO & Executive Director

    • Tenure: 3.2yrs
    • Compensation: CN¥1.17m
  • Zhang Nan (36yo)

    Executive Director

    • Tenure: 0.8yrs

Company Information

Tsaker Chemical Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tsaker Chemical Group Limited
  • Ticker: 1986
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: HK$1.974b
  • Shares outstanding: 1.04b
  • Website: https://www.tsaker.com

Number of Employees


Location

  • Tsaker Chemical Group Limited
  • Building No.10
  • 109 Jinghaisanlu
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1986SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2015

Biography

Tsaker Chemical Group Limited, an investment holding company, manufactures and sells dyes, agrochemicals, pigment intermediates, and other fine chemicals. It operates through four segments: Dye and Agricul ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:52
End of Day Share Price2019/10/15 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.