Executive Summary
Tsaker Chemical Group Limited, an investment holding company, manufactures and sells dyes, agrochemicals, pigment intermediates, and other fine chemicals.
Rewards
Risk Analysis
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
0.6%
1986
0.8%
HK Chemicals
1.7%
HK Market
1 Year Return
31.2%
1986
-30.8%
HK Chemicals
-2.9%
HK Market
Return vs Industry: 1986 exceeded the Hong Kong Chemicals industry which returned -30.8% over the past year.
Return vs Market: 1986 exceeded the Hong Kong Market which returned -2.9% over the past year.
Shareholder returns
| 1986 | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.6% | 0.8% | 1.7% |
| 30 Day | -0.5% | -7.4% | -4.8% |
| 90 Day | 27.5% | -1.1% | 3.4% |
| 1 Year | 34.7%31.2% | -25.7%-30.8% | 0.7%-2.9% |
| 3 Year | -37.0%-39.7% | -33.1%-43.5% | 15.3%3.6% |
| 5 Year | n/a | -18.0%-31.7% | 15.9%-3.5% |
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
1 week ago | Simply Wall St
Did You Manage To Avoid Tsaker Chemical Group's (HKG:1986) 42% Share Price Drop?3 weeks ago | Simply Wall St
Is Tsaker Chemical Group (HKG:1986) A Risky Investment?1 month ago | Simply Wall St
Why Tsaker Chemical Group Limited (HKG:1986) Looks Like A Quality CompanyValuation
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$1.81) is trading below our estimate of fair value (HK$14.21)
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 (3.3x) compared to the Chemicals industry average (7.1x).
PE vs Market: 1986 is good value based on its PE Ratio (3.3x) 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 (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?
20.8%
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
- Examine whether Tsaker Chemical Group is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Tsaker Chemical Group competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Materials industry.
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?
3.93%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 1986's dividend (3.93%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).
High Dividend: 1986's dividend (3.93%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).
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 ($USD220.00K) is about average for companies of similar size in the Hong Kong market ($USD284.67K).
Compensation vs Earnings: Yi's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 5.3yrs | CN¥1.54m | 51.36% CN¥949.4m | |
| CFO & Executive Director | 3.5yrs | CN¥1.17m | no data | |
| Chief Engineer | 5.8yrs | CN¥499.00k | no data | |
| Executive Director | 1.1yrs | no data | no data | |
| Company Secretary | 2.5yrs | no data | no data | |
| Joint Company Secretary | 1.6yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 5.3yrs | CN¥1.54m | 51.36% CN¥949.4m | |
| CFO & Executive Director | 3.5yrs | CN¥1.17m | no data | |
| Executive Director | 1.1yrs | no data | no data | |
| Independent Non-Executive Director | 4.9yrs | CN¥175.00k | no data | |
| Non-Executive Director | 4.8yrs | CN¥175.00k | no data | |
| Independent Non-Executive Director | 4.9yrs | CN¥175.00k | no data | |
| Independent Non-Executive Director | 4.9yrs | CN¥175.00k | no 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$1.848b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1986 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jul 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 13:01 |
| End of Day Share Price | 2020/02/17 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.