SGX:C9Q

Stock Analysis Report

Sinostar PEC Holdings

Executive Summary

Sinostar PEC Holdings Limited, an investment holding company, produces and supplies petrochemical products in the People’s Republic of China.

Rewards

PE ratio (8x) is below the SG market (13.3x)

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Profit margins (2.2%) are lower than last year (3.7%)

Does not have a meaningful market cap (SGD111M)



Snowflake Analysis

Fair value with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: C9Q has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

C9Q

2.2%

SG Oil and Gas

1.0%

SG Market


1 Year Return

-8.9%

C9Q

-18.5%

SG Oil and Gas

-1.8%

SG Market

Return vs Industry: C9Q exceeded the SG Oil and Gas industry which returned -18.5% over the past year.

Return vs Market: C9Q underperformed the SG Market which returned -1.8% over the past year.


Shareholder returns

C9QIndustryMarket
7 Day0%2.2%1.0%
30 Day-9.4%-10.2%-2.9%
90 Day-11.3%-7.4%-1.5%
1 Year-6.8%-8.9%-14.4%-18.5%2.2%-1.8%
3 Year8.5%1.2%-51.3%-55.4%9.3%-2.2%
5 Year155.0%124.7%-20.5%-32.0%9.1%-9.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sinostar PEC Holdings undervalued compared to its fair value and its price relative to the market?

7.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: C9Q (SGD0.17) is trading above our estimate of fair value (SGD0.07)

Significantly Below Fair Value: C9Q is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: C9Q is good value based on its PE Ratio (8x) compared to the Oil and Gas industry average (8x).

PE vs Market: C9Q is good value based on its PE Ratio (8x) compared to the SG market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate C9Q's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: C9Q is good value based on its PB Ratio (0.7x) compared to the SG Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Sinostar PEC Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.5%

Forecasted Energy 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 Sinostar PEC Holdings 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 Sinostar PEC Holdings performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: C9Q has high quality earnings.

Growing Profit Margin: C9Q's current net profit margins (2.2%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: C9Q's earnings have grown by 14.7% per year over the past 5 years.

Accelerating Growth: C9Q's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: C9Q had negative earnings growth (-14.1%) over the past year, making it difficult to compare to the Oil and Gas industry average (-1.3%).


Return on Equity

High ROE: C9Q's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sinostar PEC Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: C9Q's short term assets (CN¥380.7M) do not cover its short term liabilities (CN¥1.1B).

Long Term Liabilities: C9Q's short term assets (CN¥380.7M) exceed its long term liabilities (CN¥62.5M).


Debt to Equity History and Analysis

Debt Level: C9Q's debt to equity ratio (113.7%) is considered high.

Reducing Debt: Insufficient data to determine if C9Q's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: C9Q's debt is not well covered by operating cash flow (8.7%).

Interest Coverage: C9Q's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet

Inventory Level: C9Q has a high level of physical assets or inventory.

Debt Coverage by Assets: C9Q's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

2.85%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.5%markettop25%5.7%industryaverage5.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: C9Q's dividend (2.85%) is higher than the bottom 25% of dividend payers in the SG market (2.53%).

High Dividend: C9Q's dividend (2.85%) is low compared to the top 25% of dividend payers in the SG market (5.71%).


Stability and Growth of Payments

Stable Dividend: C9Q has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: C9Q has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.2%), C9Q'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?

8.8yrs

Average board tenure


CEO

Liu Cheng Zhang (47yo)

0

Mr. Liu Cheng Zhang serves as the Chief Executive Officer of Sinostar PEC Holdings Limited and previously served the same position from March 7, 2015 to February 2018. Mr. Zhang served as Deputy General Ma ...


Board Members

NamePositionTenureCompensationOwnership
Liu Cheng Zhang
CEO & Executive Director0yrsno datano data
Moh Gin Teo
Independent Non-Executive Director12.7yrsno datano data
Xiang Ping Li
Non-Executive Chairman0yrsno datano data
Jinqing Zhao
Independent Non-Executive Director4.9yrsno datano data
Li Zhi
Non Executive Director0.8yrsno datano data

8.8yrs

Average Tenure

59yo

Average Age

Experienced Board: C9Q's board of directors are considered experienced (8.8 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

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


Key Information

  • Name: Sinostar PEC Holdings Limited
  • Ticker: C9Q
  • Exchange: SGX
  • Founded: 2006
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: S$110.720m
  • Shares outstanding: 640.00m
  • Website: https://www.sinostar-pec.com

Number of Employees


Location

  • Sinostar PEC Holdings Limited
  • Prudential Tower
  • 30 Cecil Street, No. 19-08
  • Singapore
  • 49712
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
C9QSGX (Singapore Exchange)YesOrdinary SharesSGSGDSep 2007
41SDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2007

Biography

Sinostar PEC Holdings Limited, an investment holding company, produces and supplies petrochemical products in the People’s Republic of China. It operates through two segments, Gas Separation, and Transport and Logistic Services. The company offers liquefied petroleum gas (LPG), which is used as a source of fuel by households and industrial manufacturers; propylene, an organic compound to produce chemical intermediates, such as polypropylene and vinyl; and polypropylene, a thermoplastic polymer under the Hengchang brand that is used to produce plastic products for various industrial applications. It also provides logistics and transportation services for LPG and petroleum related products. Sinostar PEC Holdings Limited sells its products to manufacturers of petrochemical and plastic products, as well as LPG distributors. The company was incorporated in 2006 and is based in Singapore. Sinostar PEC Holdings Limited is a subsidiary of Intelligent People Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:51
End of Day Share Price2020/02/10 00:00
Earnings2019/09/30
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.