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.

Risks

  • Chemical Industries (Far East) is not covered by any analysts.

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

2.9%

SGX:C05

2.5%

SG Chemicals

0.7%

SG Market


1 Year Return

-2.7%

SGX:C05

5.1%

SG Chemicals

-0.2%

SG Market

C05 underperformed the Chemicals industry which returned 5.1% over the past year.

C05 underperformed the Market in Singapore which returned -0.2% over the past year.


Share holder returns

C05IndustryMarket
7 Day2.9%2.5%0.7%
30 Day2.9%1.4%1.4%
90 Day0.7%5.6%-3.3%
1 Year-0.7%-2.7%7.4%5.1%3.9%-0.2%
3 Year31.3%4.3%91.0%79.4%16.9%4.4%
5 Year100.0%39.8%28.1%19.8%9.5%-8.6%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Chemical Industries (Far East)'s share price is below the future cash flow value, and at a moderate discount (> 20%).

Chemical Industries (Far East)'s share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Chemical Industries (Far East) is good value based on earnings compared to the SG Chemicals industry average.

Chemical Industries (Far East) is good value based on earnings compared to the Singapore market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Chemical Industries (Far East), we can't assess if its growth is good value.


Price Based on Value of Assets

Chemical Industries (Far East) is good value based on assets compared to the SG Chemicals industry average.


Next Steps

Future Growth

How is Chemical Industries (Far East) expected 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 Estimates


Future Annual Growth Analysis

Unable to determine if Chemical Industries (Far East) is high growth as no revenue estimate data is available.

Chemical Industries (Far East)'s earnings are expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).

Unable to compare Chemical Industries (Far East)'s revenue growth to the Singapore market average as no estimate data is available.

Chemical Industries (Far East)'s earnings growth is expected to exceed the Singapore market average.

Chemical Industries (Far East)'s earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Chemical Industries (Far East) will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Chemical Industries (Far East)'s year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Chemical Industries (Far East)'s 1-year earnings growth exceeds its 5-year average (15.7% vs -2.6%)

Chemical Industries (Far East)'s earnings growth has not exceeded the SG Chemicals industry average in the past year (15.7% vs 15.7%).


Return on Equity

Chemical Industries (Far East) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Chemical Industries (Far East) used its assets more efficiently than the SG Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Chemical Industries (Far East)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

Chemical Industries (Far East) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Chemical Industries (Far East)'s cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Chemical Industries (Far East) has no debt.

Chemical Industries (Far East) has no debt compared to 5 years ago when it was 43.4%.

Chemical Industries (Far East) has no debt, it does not need to be covered by operating cash flow.

Chemical Industries (Far East) has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Chemical Industries (Far East) has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

2.08%

Current Dividend Yield


Dividend Yield and Payments Analysis

Chemical Industries (Far East)'s pays a lower dividend yield than the bottom 25% of dividend payers in Singapore (2.5%).

Chemical Industries (Far East)'s dividend is below the markets top 25% of dividend payers in Singapore (5.6%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

No dividend growth in 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (9.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

5.8yrs

Average management tenure


CEO

Soo Peng Lim (90yo)

0yrs

Tenure

S$3,775,000

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

Soo Peng's remuneration is higher than average for companies of similar size in Singapore.

Soo Peng's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

5.8yrs

Average Tenure

59yo

Average Age

The average tenure for the Chemical Industries (Far East) management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.0yrs

Average Tenure

66yo

Average Age

The tenure for the Chemical Industries (Far East) board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Soo Peng Lim (90yo)

    Founder

    • Tenure: 0yrs
    • Compensation: S$3.78m
  • Cecil Lim (66yo)

    Executive Director

    • Tenure: 3yrs
    • Compensation: S$1.36m
  • Collin Lim (52yo)

    Plant Manager & Executive Director

    • Tenure: 4yrs
    • Compensation: S$785.00k
  • Keng Liang Yeo

    Sales & Marketing Manager

    • Tenure: 10.5yrs
  • Soon Soo Foo

    Company Secretary

    • Tenure: 5.4yrs
  • Wilson Loh

    Head of Commercial

    • Tenure: 5.8yrs
  • Yi Shin Chiang (48yo)

    Chief Financial Officer

    • Tenure: 4.5yrs
  • Ivan Toh

    Head of Commercial

    • Tenure: 0yrs

Board Members

  • Soon Bee Wan (80yo)

    Non-Executive Independent Director

    • Tenure: 19.2yrs
    • Compensation: S$55.00k
  • Soo Peng Lim (90yo)

    Founder

    • Tenure: 0yrs
    • Compensation: S$3.78m
  • Cecil Lim (66yo)

    Executive Director

    • Tenure: 3yrs
    • Compensation: S$1.36m
  • Collin Lim (52yo)

    Plant Manager & Executive Director

    • Tenure: 4yrs
    • Compensation: S$785.00k
  • Elaine Lim Lee (63yo)

    Non-Executive Independent Director

    • Tenure: 3yrs
    • Compensation: S$55.00k
  • Hock Chye Yeo

    Non-Executive Independent Director

    • Tenure: 0.2yrs

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$54.681m
  • 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 Analysis2019/09/18 12:33
End of Day Share Price2019/09/17 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.