SEHK:954

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Changmao Biochemical Engineering

Executive Summary

Changmao Biochemical Engineering Company Limited, together with its subsidiaries, produces and sells organic acids for food additive, chemical, and pharmaceutical industries in Mainland China, Europe, the Asia Pacific, the United States, and internationally.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Changmao Biochemical Engineering's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 954's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.2%

954

4.4%

HK Chemicals

5.8%

HK Market


1 Year Return

-16.5%

954

-31.4%

HK Chemicals

-4.0%

HK Market

Return vs Industry: 954 exceeded the Hong Kong Chemicals industry which returned -31.4% over the past year.

Return vs Market: 954 underperformed the Hong Kong Market which returned -4% over the past year.


Shareholder returns

954IndustryMarket
7 Day8.2%4.4%5.8%
30 Day-10.8%-0.9%4.0%
90 Day-25.0%-9.4%-2.6%
1 Year-8.6%-16.5%-26.8%-31.4%-0.6%-4.0%
3 Year-22.6%-34.0%-30.7%-42.2%1.3%-9.2%
5 Year-39.2%-50.7%-43.0%-53.5%-9.2%-23.5%

Price Volatility Vs. Market

How volatile is Changmao Biochemical Engineering's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Changmao Biochemical Engineering 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: 954 (HK$0.66) is trading below our estimate of fair value (HK$11.24)

Significantly Below Fair Value: 954 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 954 is good value based on its PE Ratio (5.5x) compared to the Chemicals industry average (6.6x).

PE vs Market: 954 is good value based on its PE Ratio (5.5x) compared to the Hong Kong market (9.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 954's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 954 is good value based on its PB Ratio (0.5x) compared to the HK Chemicals industry average (0.7x).


Next Steps

Future Growth

How is Changmao Biochemical Engineering forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.0%

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 Changmao Biochemical Engineering 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 Changmao Biochemical Engineering performed over the past 5 years?

9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 954 has high quality earnings.

Growing Profit Margin: 954's current net profit margins (11.8%) are higher than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: 954's earnings have grown by 9.2% per year over the past 5 years.

Accelerating Growth: 954's earnings growth over the past year (15.4%) exceeds its 5-year average (9.2% per year).

Earnings vs Industry: 954 earnings growth over the past year (15.4%) exceeded the Chemicals industry -9.9%.


Return on Equity

High ROE: 954's Return on Equity (8.7%) is considered low.


Next Steps

Financial Health

How is Changmao Biochemical Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: 954's short term assets (CN¥310.7M) exceed its short term liabilities (CN¥73.1M).

Long Term Liabilities: 954's short term assets (CN¥310.7M) exceed its long term liabilities (CN¥2.3M).


Debt to Equity History and Analysis

Debt Level: 954's debt to equity ratio (3.1%) is considered satisfactory.

Reducing Debt: 954's debt to equity ratio has reduced from 16.7% to 3.1% over the past 5 years.

Debt Coverage: 954's debt is well covered by operating cash flow (577.2%).

Interest Coverage: 954's interest payments on its debt are well covered by EBIT (247.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Changmao Biochemical Engineering's current dividend yield, its reliability and sustainability?

9.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 954's dividend (9.12%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.43%).

High Dividend: 954's dividend (9.12%) is in the top 25% of dividend payers in the Hong Kong market (7.03%)


Stability and Growth of Payments

Stable Dividend: 954 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 954's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (50%), 954's dividend payments are well 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?

14.4yrs

Average board tenure


CEO

Chun Pan (49yo)

no data

Tenure

CN¥1,232,000

Compensation

Mr. Chun Pan has been General Manager of Changmao Biochemical Engineering Company Limited since April 1, 2014 and also serves as its Chief Executive Officer. Mr. Pan served as Deputy General Manager of Cha ...


CEO Compensation Analysis

Compensation vs Market: Chun's total compensation ($USD173.94K) is about average for companies of similar size in the Hong Kong market ($USD228.98K).

Compensation vs Earnings: Chun's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Xin Sheng Rui
Chairman & Compliance Officerno dataCN¥1.85m0.71% CN¥2.5m
Chun Pan
CEO, GM & Executive Directorno dataCN¥1.23mno data
A. Xing Lu
Manager of Sales Department & Supervisor4yrsno datano data
Yi Xin Leng
Non-Executive Directorno dataCN¥225.00k0.0098% CN¥34.3k
Xiao Ping Yu
Non-Executive Directorno dataCN¥225.00k12.95% CN¥45.3m
Xian Biao Zeng
Non-Executive Directorno dataCN¥225.00kno data
Rui Juan Zhou
Chairman of the Supervisory Boardno dataCN¥56.00kno data
Ping Kai Ouyang
Independent Non-Executive Director19yrsCN¥60.00kno data
Jian Ping Wang
Non-Executive Director13yrsCN¥225.00kno data
Xin Wei
Independent Non-Executive Director15.75yrsCN¥60.00kno data

14.4yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 954's board of directors are seasoned and experienced ( 14.4 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

Changmao Biochemical Engineering Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Changmao Biochemical Engineering Company Limited
  • Ticker: 954
  • Exchange: SEHK
  • Founded: 1992
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: HK$349.602m
  • Shares outstanding: 529.70m
  • Website: https://changmaobio.todayir.com

Number of Employees


Location

  • Changmao Biochemical Engineering Company Limited
  • No. 1228 Chang Jiang Bei Road
  • New North Zone
  • Changzhou
  • Jiangsu Province
  • 213034
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
954SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJun 2002

Biography

Changmao Biochemical Engineering Company Limited, together with its subsidiaries, produces and sells organic acids for food additive, chemical, and pharmaceutical industries in Mainland China, Europe, the Asia Pacific, the United States, and internationally. Its products include fumaric acid, maleic acid, L-malic acid, D-malic acid, DL-malic acid, L(+)-tartaric acid, D(-)-tartaric acid, DL-tartaric acid, L-aspartic acid, and aspartame used as food additives, pharmaceutical adjuvant, and active pharmaceutical ingredient, etc. The company is also involved in the research and development of medicine and nutraceutical products; production and sale of food additives; trading of organic acids; and property holding activities. Changmao Biochemical Engineering Company Limited was founded in 1992 and is headquartered in Changzhou, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 13:05
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
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.