SGX:C05

Stock Analysis Report

Chemical Industries (Far East)

Executive Summary

Chemical Industries (Far East) Limited, an investment holding company, manufactures and sells chemicals primarily in Singapore and Myanmar.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.

Share Price & News

How has Chemical Industries (Far East)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

C05

-0.3%

SG Chemicals

0.9%

SG Market


1 Year Return

-4.1%

C05

7.2%

SG Chemicals

1.4%

SG Market

Return vs Industry: C05 underperformed the SG Chemicals industry which returned 7.2% over the past year.

Return vs Market: C05 underperformed the SG Market which returned 1.4% over the past year.


Shareholder returns

C05IndustryMarket
7 Day0%-0.3%0.9%
30 Day1.4%0.5%-2.3%
90 Day1.4%7.5%-6.7%
1 Year-2.0%-4.1%9.5%7.2%5.4%1.4%
3 Year24.1%-1.4%87.6%76.2%15.8%3.4%
5 Year103.2%42.0%30.5%22.0%11.3%-7.0%

Price Volatility Vs. Market

How volatile is Chemical Industries (Far East)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Chemical Industries (Far East) undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: C05 (SGD0.71) is trading below our estimate of fair value (SGD2.42)

Significantly Undervalued: C05 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: C05 is good value based on its PE Ratio (5x) compared to the Chemicals industry average (13.5x).

PE vs Market: C05 is good value based on its PE Ratio (5x) compared to the SG market (13.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate C05's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: C05 is good value based on its PB Ratio (0.5x) compared to the SG Chemicals industry average (0.5x).


Next Steps

Future Growth

How is Chemical Industries (Far East) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: C05's forecast earnings growth (5.9% per year) is above the savings rate (2.3%).

Earnings vs Market: C05's earnings (5.9% per year) are forecast to grow faster than the SG market (5.7% per year).

High Growth Earnings: C05's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if C05's revenue is forecast to grow faster than the SG market.

High Growth Revenue: Insufficient data to determine if C05's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if C05's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Chemical Industries (Far East) performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: C05's earnings have declined by -2.6% per year over the past 5 years.

Accelerating Growth: C05's earnings growth over the past year (15.7%) exceeds its 5-year average (-2.6% per year).

Earnings vs Industry: C05 earnings growth over the past year (15.7%) underperformed the Chemicals industry 15.7%.


Return on Equity

High ROE: C05's Return on Equity (9.1%) is considered low.


Return on Assets

ROA vs Industry: C05 has a higher Return on Assets than the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: C05's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Chemical Industries (Far East)'s financial position?


Financial Position Analysis

Short Term Liabilities: C05's short term assets (SGD48.3M) exceeds its short term liabilities (SGD9.4M)

Long Term Liabilities: C05's short term assets (48.3M) exceeds its long term liabilities (2.9M)


Debt to Equity History and Analysis

Debt Level: C05 is debt free.

Reducing Debt: C05 has no debt compared to 5 years ago when its debt to equity ratio was 43.4%.

Debt Coverage: C05 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: C05 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: C05 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if C05's debt is covered by short term assets.


Next Steps

Dividend

What is Chemical Industries (Far East)'s current dividend yield, its reliability and sustainability?

2.11%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%2.5%markettop25%5.6%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: C05's dividend (2.11%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: C05's dividend (2.11%) is low compared to the top 25% of dividend payers in the SG market (5.59%).

Stable Dividend: C05's dividend payments have been volatile in the past 10 years.

Growing Dividend: C05's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.7%), C05'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

What is the CEO of Chemical Industries (Far East)'s salary, the management and board of directors tenure and is there insider trading?

5.9yrs

Average management tenure


CEO

Soo Peng Lim (90yo)

0yrs

Tenure

S$1,325,000

Compensation

Mr. Soo Peng Lim, JP, BBM(L), BBM, PBM, founded of Chemical Industries Far East Ltd. in 1962. Mr. Lim serves as Managing Director of Chemical Industries Far East Ltd. In the 1960s, he was an elected Member ...


CEO Compensation Analysis

Compensation vs. Market: Soo Peng's total compensation ($USD966.14K) is about average for companies of similar size in the SG market ($USD259.62K).

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


Management Age and Tenure

5.9yrs

Average Tenure

59yo

Average Age

Experienced Management: C05's management team is seasoned and experienced (5.9 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

66yo

Average Age

Experienced Board: C05's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Soo Peng Lim (90yo)

    Founder

    • Tenure: 0yrs
    • Compensation: S$1.33m
  • Cecil Lim (66yo)

    Executive Director

    • Tenure: 3.1yrs
    • Compensation: S$488.00k
  • Collin Lim (52yo)

    Plant Manager & Executive Director

    • Tenure: 4.1yrs
    • Compensation: S$295.00k
  • Keng Liang Yeo

    Sales & Marketing Manager

    • Tenure: 10.6yrs
  • Soon Soo Foo

    Company Secretary

    • Tenure: 5.5yrs
  • Wilson Loh

    Head of Commercial

    • Tenure: 5.9yrs
  • Yi Shin Chiang (48yo)

    Chief Financial Officer

    • Tenure: 4.6yrs
  • Ivan Toh

    Head of Commercial

    • Tenure: 0yrs

Board Members

  • Soon Bee Wan (80yo)

    Non-Executive Independent Director

    • Tenure: 19.3yrs
    • Compensation: S$55.00k
  • Soo Peng Lim (90yo)

    Founder

    • Tenure: 0yrs
    • Compensation: S$1.33m
  • Cecil Lim (66yo)

    Executive Director

    • Tenure: 3.1yrs
    • Compensation: S$488.00k
  • Collin Lim (52yo)

    Plant Manager & Executive Director

    • Tenure: 4.1yrs
    • Compensation: S$295.00k
  • Elaine Lim Lee (63yo)

    Non-Executive Independent Director

    • Tenure: 3.1yrs
    • Compensation: S$55.00k
  • Hock Chye Yeo

    Non-Executive Independent Director

    • Tenure: 0.3yrs

Company Information

Chemical Industries (Far East) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chemical Industries (Far East) Limited
  • Ticker: C05
  • Exchange: SGX
  • Founded: 1962
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: S$53.921m
  • Shares outstanding: 75.95m
  • Website: https://www.cil.sg

Location

  • Chemical Industries (Far East) Limited
  • 3, Jalan Samulun
  • Singapore
  • 629127
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
C05SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992

Biography

Chemical Industries (Far East) Limited, an investment holding company, manufactures and sells chemicals primarily in Singapore and Myanmar. The company operates in two segments, Industrial Chemicals and Pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:33
End of Day Share Price2019/09/27 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.