SEHK:297

Stock Analysis Report

Executive Summary

Sinofert Holdings Limited, an investment holding company, engages in the production, import and export, distribution, and retail of fertilizer raw materials and finished products primarily in Mainland China and Macao Special Administrative Region.


Snowflake Analysis

Good value with adequate balance sheet.

Share Price & News

How has Sinofert Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 297 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

297

-0.8%

HK Chemicals

-3.3%

HK Market


1 Year Return

-20.2%

297

-34.4%

HK Chemicals

-9.6%

HK Market

Return vs Industry: 297 exceeded the Hong Kong Chemicals industry which returned -35.3% over the past year.

Return vs Market: 297 underperformed the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

297IndustryMarket
7 Day1.2%-0.8%-3.3%
30 Day-1.2%-3.6%-3.8%
90 Day5.1%-3.0%-0.2%
1 Year-18.1%-20.2%-29.5%-34.4%-6.3%-9.6%
3 Year-31.3%-33.1%-34.1%-44.5%11.2%-0.05%
5 Year-50.9%-52.8%-19.8%-33.5%12.7%-6.0%

Price Volatility Vs. Market

How volatile is Sinofert Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sinofert Holdings 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: 297 (HK$0.83) is trading below our estimate of fair value (HK$5.97)

Significantly Below Fair Value: 297 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 297 is poor value based on its PE Ratio (8.8x) compared to the Chemicals industry average (7.3x).

PE vs Market: 297 is good value based on its PE Ratio (8.8x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: 297's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 297 is good value based on its PB Ratio (0.7x) compared to the HK Chemicals industry average (0.8x).


Next Steps

Future Growth

How is Sinofert Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 297's earnings are forecast to decline over the next 3 years (-4.4% per year).

Earnings vs Market: 297's earnings are forecast to decline over the next 3 years (-4.4% per year).

High Growth Earnings: 297's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 297's revenue (6.7% per year) is forecast to grow slower than the Hong Kong market (9.7% per year).

High Growth Revenue: 297's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 297's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has Sinofert Holdings performed over the past 5 years?

-14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 297 has high quality earnings.

Growing Profit Margin: 297 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 297 has become profitable over the past 5 years, growing earnings by -14.1% per year.

Accelerating Growth: 297 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 297 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (21.4%).


Return on Equity

High ROE: 297's Return on Equity (8.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sinofert Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 297's short term assets (CN¥11.7B) exceed its short term liabilities (CN¥9.9B).

Long Term Liabilities: 297's short term assets (CN¥11.7B) exceed its long term liabilities (CN¥373.2M).


Debt to Equity History and Analysis

Debt Level: 297's debt to equity ratio (54.7%) is considered high.

Reducing Debt: 297's debt to equity ratio has increased from 35.6% to 54.7% over the past 5 years.


Balance Sheet

Inventory Level: 297 has a high level of physical assets or inventory.

Debt Coverage by Assets: 297's debt is covered by short term assets (assets are 2.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 297 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 297 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Sinofert Holdings's current dividend yield, its reliability and sustainability?

2.63%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%2.3%markettop25%6.4%industryaverage9.5%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: 297's dividend (2.63%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.32%).

High Dividend: 297's dividend (2.63%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.41%).


Stability and Growth of Payments

Stable Dividend: 297's dividend payments have been volatile in the past 10 years.

Growing Dividend: 297's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.2%), 297's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 297's dividends in 3 years are forecast to be well covered by earnings (19.3% payout ratio).


Next Steps

Management

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

8.6yrs

Average management tenure


CEO

Hengde Qin (49yo)

3.2yrs

Tenure

CN¥6,105,000

Compensation

Mr. Hengde Qin has been the Chief Executive Officer and Executive Director of Sinofert Holdings Limited since December 08, 2016. Mr. Qin serves as Chief Accountant of National Investment Resource Developme ...


CEO Compensation Analysis

Compensation vs Market: Hengde's total compensation ($USD870.29K) is above average for companies of similar size in the Hong Kong market ($USD493.46K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hengde Qin
CEO & Executive Director3.2yrsCN¥6.11mno data
Harry Yang
Executive Director13.9yrsCN¥2.23mno data
Jian Gao
Chief Financial Officer8.6yrsno datano data
Ming Feng
Executive Director0yrsno datano data
Kar Mun Cheung
Company Secretary8.7yrsno datano data

8.6yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 297's management team is seasoned and experienced (8.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hengde Qin
CEO & Executive Director3.2yrsCN¥6.11mno data
Harry Yang
Executive Director13.9yrsCN¥2.23mno data
Ming Feng
Executive Director0yrsno datano data
Ming Tung Ko
Independent Non-Executive Director19.8yrsCN¥412.00kno data
Hau Yin Tse
Independent Non-Executive Director12.7yrsCN¥465.00k0.048% CN¥2.8m
Xin Lu
Independent Non-Executive Director5yrsCN¥379.00k0.041% CN¥2.3m
Lin Yang
Non-Executive Director9.5yrsno datano data

11.1yrs

Average Tenure

56yo

Average Age

Experienced Board: 297's board of directors are seasoned and experienced ( 11.1 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

Sinofert Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sinofert Holdings Limited
  • Ticker: 297
  • Exchange: SEHK
  • Founded:
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: HK$5.690b
  • Shares outstanding: 7.02b
  • Website: https://www.sinofert.com

Number of Employees


Location

  • Sinofert Holdings Limited
  • Convention Plaza
  • Units 4705, Office Tower
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
297SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2000
WCQ1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2000
SNFR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2000
297SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2000
297SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2000
SNFR.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2008

Biography

Sinofert Holdings Limited, an investment holding company, engages in the production, import and export, distribution, and retail of fertilizer raw materials and finished products primarily in Mainland China and Macao Special Administrative Region. The company operates through Basic Fertilizers, Distribution, and Production segments. It offers potash, nitrogen, and compound fertilizers, as well as phosphate and monocalcium/dicalcium phosphate. The company also provides technological research and development, and services relating to the fertilizer business and products; trades in pesticides and fertilizers; develops agriculture products; and manufactures and sells textiles and feed stuffs. In addition, it engages in the exploration and exploitation of phosphate mine. The company is based in Wan Chai, Hong Kong. Sinofert Holdings Limited is a subsidiary of Sinochem Hong Kong (Group) Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 12:52
End of Day Share Price2020/02/26 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.