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 Analysis

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

Stable Share Price: 1986's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.6%

1986

1.2%

HK Chemicals

-0.6%

HK Market


1 Year Return

33.6%

1986

-32.7%

HK Chemicals

-7.6%

HK Market

Return vs Industry: 1986 exceeded the Hong Kong Chemicals industry which returned -32.8% over the past year.

Return vs Market: 1986 exceeded the Hong Kong Market which returned -7.4% over the past year.


Shareholder returns

1986IndustryMarket
7 Day9.6%1.2%-0.6%
30 Day4.3%-1.4%-1.2%
90 Day39.3%-0.7%3.0%
1 Year37.2%33.6%-27.8%-32.7%-4.2%-7.6%
3 Year-24.8%-28.0%-33.7%-44.1%12.9%1.5%
5 Yearn/a-19.5%-33.0%13.1%-5.6%

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

Below Fair Value: 1986 (HK$1.95) is trading below our estimate of fair value (HK$14.27)

Significantly Below Fair Value: 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 (3.6x) compared to the Chemicals industry average (7.4x).

PE vs Market: 1986 is good value based on its PE Ratio (3.6x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

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?

20.9%

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

28.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1986 has high quality earnings.

Growing Profit Margin: 1986's current net profit margins (27.7%) are higher than last year (14.3%).


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 21.4%.


Return on Equity

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


Return on Assets


Return on Capital Employed


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) exceed its short term liabilities (CN¥807.5M).

Long Term Liabilities: 1986's short term assets (CN¥849.5M) exceed its long term liabilities (CN¥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 2.9x debt).


Next Steps

Dividend

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

3.64%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%2.3%markettop25%6.3%industryaverage9.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1986's dividend (3.64%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 1986's dividend (3.64%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).


Stability and Growth of Payments

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 4 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

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

3.9yrs

Average management tenure


CEO

Yi Ge (37yo)

5.3yrs

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 ($USD218.67K) is about average for companies of similar size in the Hong Kong market ($USD289.95K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yi Ge
Chairman & CEO5.3yrsCN¥1.54m51.36% CN¥1.0b
Kun Bai
CFO & Executive Director3.5yrsCN¥1.17mno data
Qiang Shi
Chief Engineer5.8yrsCN¥499.00kno data
Zhang Nan
Executive Director1.1yrsno datano data
Suet Lun Leung
Company Secretary2.5yrsno datano data
Xue Yang
Joint Company Secretary1.6yrsno datano data

3.9yrs

Average Tenure

36.5yo

Average Age

Experienced Management: 1986's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yi Ge
Chairman & CEO5.3yrsCN¥1.54m51.36% CN¥1.0b
Kun Bai
CFO & Executive Director3.5yrsCN¥1.17mno data
Zhang Nan
Executive Director1.1yrsno datano data
Kai Chung Ho
Independent Non-Executive Director4.9yrsCN¥175.00kno data
Alain Fontaine
Non-Executive Director4.8yrsCN¥175.00kno data
Lin Zhu
Independent Non-Executive Director4.9yrsCN¥175.00kno data
Miao Yu
Independent Non-Executive Director4.9yrsCN¥175.00kno data

4.9yrs

Average Tenure

42yo

Average Age

Experienced Board: 1986's board of directors are considered experienced (4.9 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$2.025b
  • 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 Agricultural Chemical Intermediates, Pigment Intermediates, Environmental Technology Consultancy Service, and Battery Materials. The company Dye and Agricultural Chemical Intermediates segment produces dye intermediate products for use in the production of dye related products, as well as products for the use in the production of agricultural chemicals. The Pigment Intermediates segment produces pigment intermediate products for the use in the production of pigments. The Environmental Technology Consultancy Service segment engages in environmental protection activties. The Battery Materials segment manufactures and sells battery materials. The company operates in Mainland China, India, Germany, the United States, Taiwan, Spain, Indonesia, Brazil, Italy, Japan, Korea, Turkey, and internationally. Tsaker Chemical Group Limited was founded in 1997 and is headquartered in Beijing, the People’s Republic of China. Tsaker Chemical Group Limited is a subsidiary of Cavalli Enterprises Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 13:16
End of Day Share Price2020/02/21 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.