SEHK:1986

Stock Analysis Report

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Tsaker Chemical Group

Executive Summary

Tsaker Chemical Group Limited, an investment holding company, manufactures and sells fine chemicals. More Details


Snowflake Analysis

Flawless balance sheet and fair value.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

1986

-1.0%

HK Chemicals

-0.3%

HK Market


1 Year Return

-33.0%

1986

-13.0%

HK Chemicals

0.7%

HK Market

Return vs Industry: 1986 underperformed the Hong Kong Chemicals industry which returned -13% over the past year.

Return vs Market: 1986 underperformed the Hong Kong Market which returned 0.9% over the past year.


Shareholder returns

1986IndustryMarket
7 Day0.8%-1.0%-0.3%
30 Day-4.7%2.2%0.2%
90 Day-5.4%-12.9%0.3%
1 Year-21.0%-33.0%-7.7%-13.0%4.9%0.7%
3 Year-57.2%-64.9%-41.1%-51.3%-5.8%-16.1%
5 Year-16.7%-34.1%-14.8%-34.1%14.0%-5.4%

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?

11.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1986 (HK$1.22) is trading below our estimate of fair value (HK$1.37)

Significantly Below Fair Value: 1986 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1986 is good value based on its PE Ratio (4.4x) compared to the HK Chemicals industry average (7.8x).

PE vs Market: 1986 is good value based on its PE Ratio (4.4x) compared to the Hong Kong market (11.2x).


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's PB Ratio (0.6x) is in line with the HK Chemicals industry average.


Next Steps

Future Growth

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

12.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 1986's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if 1986's earnings are forecast to grow faster than the Hong Kong market

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

Revenue vs Market: 1986's revenue (12.2% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 1986's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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?

33.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1986 has high quality earnings.

Growing Profit Margin: 1986's current net profit margins (16.9%) are lower than last year (27.7%).


Past Earnings Growth Analysis

Earnings Trend: 1986's earnings have grown significantly by 33.8% per year over the past 5 years.

Accelerating Growth: 1986's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1986 had negative earnings growth (-50.7%) over the past year, making it difficult to compare to the Chemicals industry average (-33.5%).


Return on Equity

High ROE: 1986's Return on Equity (14.3%) is considered low.


Next Steps

Financial Health

How is Tsaker Chemical Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1986's short term assets (CN¥739.9M) exceed its short term liabilities (CN¥648.6M).

Long Term Liabilities: 1986's short term assets (CN¥739.9M) exceed its long term liabilities (CN¥49.2M).


Debt to Equity History and Analysis

Debt Level: 1986's debt to equity ratio (16.6%) is considered satisfactory.

Reducing Debt: 1986's debt to equity ratio has reduced from 43.3% to 16.6% over the past 5 years.

Debt Coverage: 1986's debt is well covered by operating cash flow (120.4%).

Interest Coverage: 1986's interest payments on its debt are well covered by EBIT (21.8x coverage).


Balance Sheet


Next Steps

Dividend

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

9.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1986's dividend (9.13%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1986's dividend (9.13%) is in the top 25% of dividend payers in the Hong Kong market (6.83%)


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 reasonable payout ratio (58.1%), 1986's dividend payments are 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?

4.6yrs

Average management tenure


CEO

Yi Ge (38 yo)

6yrs

Tenure

CN¥4,367,000

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 ($USD653.48K) is above average for companies of similar size in the Hong Kong market ($USD293.56K).

Compensation vs Earnings: Yi's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yi Ge
Chairman & CEO6yrsCN¥4.37m51.62%
CN¥ 629.3m
Kun Bai
CFO & Executive Director4.17yrsCN¥1.37mno data
Zhang Nan
Executive Director1.75yrsCN¥829.00kno data
Qiang Shi
Chief Engineer6.5yrsCN¥499.00kno data
Suet Lun Leung
Company Secretary3.17yrsno datano data
Xue Yang
Joint Company Secretary2.25yrsno datano data

4.6yrs

Average Tenure

37.5yo

Average Age

Experienced Management: 1986's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yi Ge
Chairman & CEO6yrsCN¥4.37m51.62%
CN¥ 629.3m
Kun Bai
CFO & Executive Director4.17yrsCN¥1.37mno data
Zhang Nan
Executive Director1.75yrsCN¥829.00kno data
Kai Chung Ho
Independent Non-Executive Director5.58yrsCN¥350.00kno data
Alain Vincent Fontaine
Non-Executive Director5.5yrsCN¥350.00kno data
Lin Zhu
Independent Non-Executive Director5.58yrsCN¥350.00kno data
Miao Yu
Independent Non-Executive Director5.58yrsCN¥350.00kno data

5.5yrs

Average Tenure

43yo

Average Age

Experienced Board: 1986's board of directors are considered experienced (5.5 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 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$1.219b
  • Shares outstanding: 1.03b
  • Website: https://www.tsaker.com

Number of Employees


Location

  • Tsaker Chemical Group Limited
  • Building No.10
  • 109 Jinghaisanlu
  • Beijing
  • Beijing Province
  • 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 fine chemicals. It operates through four segments: Dye and Agricultural Chemical Intermediates, Pigment Intermediates, E ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 13:01
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
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.