SEHK:954

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Changmao Biochemical Engineering

Market Cap

HK$381.4m

Last Updated

2021/06/24 10:08 UTC

Data Sources

Company Financials

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. More Details


Snowflake Analysis

Flawless balance sheet with questionable track record.

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 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 954's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0%

954

2.8%

HK Chemicals

0.7%

HK Market


1 Year Return

10.8%

954

71.8%

HK Chemicals

21.9%

HK Market

Return vs Industry: 954 underperformed the Hong Kong Chemicals industry which returned 71.8% over the past year.

Return vs Market: 954 underperformed the Hong Kong Market which returned 21.9% over the past year.


Shareholder returns

954IndustryMarket
7 Day0%2.8%0.7%
30 Day-6.5%3.5%-0.9%
90 Day7.5%22.4%1.2%
1 Year14.3%10.8%79.9%71.8%26.1%21.9%
3 Year13.1%-6.5%-0.8%-17.8%15.4%3.0%
5 Year-18.3%-33.9%46.1%10.8%56.3%30.2%

Long-Term 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?

18.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 954 (HK$0.72) is trading above our estimate of fair value (HK$0.38)

Significantly Below Fair Value: 954 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 954 is poor value based on its PE Ratio (18.9x) compared to the Hong Kong Chemicals industry average (9.9x).

PE vs Market: 954 is poor value based on its PE Ratio (18.9x) compared to the Hong Kong market (11.4x).


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).


Future Growth

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

18.6%

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.


Past Performance

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

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 954 has high quality earnings.

Growing Profit Margin: 954's current net profit margins (3.8%) are lower than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: 954's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: 954's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 954 had negative earnings growth (-71.1%) over the past year, making it difficult to compare to the Chemicals industry average (-0.7%).


Return on Equity

High ROE: 954's Return on Equity (2.6%) is considered low.


Financial Health

How is Changmao Biochemical Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: 954's short term assets (CN¥409.2M) exceed its short term liabilities (CN¥196.3M).

Long Term Liabilities: 954's short term assets (CN¥409.2M) exceed its long term liabilities (CN¥1.1M).


Debt to Equity History and Analysis

Debt Level: 954's debt to equity ratio (0.03%) is considered satisfactory.

Reducing Debt: 954's debt to equity ratio has reduced from 15.6% to 0.03% over the past 5 years.

Debt Coverage: 954's debt is well covered by operating cash flow (30840.3%).

Interest Coverage: 954 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

3.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 954's dividend (3.3%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.89%).

High Dividend: 954's dividend (3.3%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.03%).


Stability and Growth of Payments

Stable Dividend: 954's dividend payments have been volatile in the past 10 years.

Growing Dividend: 954's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63%), 954'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?

11.1yrs

Average board tenure


CEO

Chun Pan (50 yo)

no data

Tenure

CN¥641,000

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. He joined Changmao Biochemical in August 1993. ...


CEO Compensation Analysis

Compensation vs Market: Chun's total compensation ($USD99.01K) is below average for companies of similar size in the Hong Kong market ($USD226.51K).

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


Board Members

Experienced Board: 954'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

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$381.384m
  • Shares outstanding: 529.70m
  • Website: https://www.cmbec.com.hk

Number of Employees


Location

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

Listings


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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 10:08
End of Day Share Price2021/06/24 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.