China Starch Holdings Ltd. (3838) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

China Starch Holdings Ltd.

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Why is China Starch Holdings Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 61.47

Healthy long term growth as Net Sales has grown by an annual rate of 6.53%

With ROE of 13.70%, it has a Very Attractive valuation with a 0.23 Price to Book Value

Over the past year, while the stock has generated a return of -9.68%, its profits have risen by 27.7% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to China Starch Holdings Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is China Starch Holdings Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Starch Holdings Ltd.

-9.68%

-0.53

26.28%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.53%

EBIT Growth (5y)

39.25%

EBIT to Interest (avg)

61.47

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

2.78

Tax Ratio

25.36%

Dividend Payout Ratio

29.17%

Pledged Shares

Institutional Holding

ROCE (avg)

15.83%

ROE (avg)

10.58%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.23

EV to EBIT

-1.13

EV to EBITDA

-0.79

EV to Capital Employed

-0.30

EV to Sales

-0.07

PEG Ratio

0.06

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

13.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 1,758.52 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 158.06%

-12What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,591.27

RAW MATERIAL COST(Y)

Grown by 82.68% (YoY

NET SALES(Q)

Lowest at HKD 5,412.11 MM

OPERATING PROFIT(Q)

Lowest at HKD 70.07 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.29 %

PRE-TAX PROFIT(Q)

Lowest at HKD 5.3 MM

NET PROFIT(Q)

Lowest at HKD 36.72 MM

EPS(Q)

Lowest at HKD 0.01

Here's what is working for China Starch Holdings Ltd.

Operating Cash Flow

Highest at HKD 1,758.52 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Dividend Payout Ratio

Highest at 158.06%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for China Starch Holdings Ltd.

Interest Coverage Ratio

Lowest at 1,591.27

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at HKD 5,412.11 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Operating Profit

Lowest at HKD 70.07 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 1.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD 5.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Pre-Tax Profit

Fallen at -98.99%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 36.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Net Profit

Fallen at -87.35%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Raw Material Cost

Grown by 82.68% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at HKD 16.77 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income