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China Starch Holdings Limited (HK:3838)
:3838
Hong Kong Market
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China Starch Holdings Limited (3838) AI Stock Analysis

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HK:3838

China Starch Holdings Limited

(3838)

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Neutral 57 (OpenAI - 5.2)
Rating:57Neutral
Price Target:
HK$0.18
▲(1.11% Upside)
Action:Reiterated
Date:06/25/26
The score is held back primarily by deteriorating 2025 profitability and a sharp decline in cash generation (including negative free cash flow), alongside clearly bearish technical momentum. These risks are partially offset by an inexpensive valuation (low P/E) and a high dividend yield, plus a manageable leverage position on the balance sheet.
Positive Factors
Diversified industrial end markets
China Starch serves multiple durable end markets (food, feed, paper, textiles, pharma), reducing reliance on any single sector. That breadth provides steady baseline demand and revenue diversification, while deep-processing capabilities capture more value across product lines over cycles.
Negative Factors
Sharp 2025 margin compression
Material margin deterioration in 2025 halved gross profitability and cut net income substantially, weakening return on capital. If pricing power or input-cost passthrough remain limited, sustained margin pressure will reduce reinvestment capacity and threaten long-term earnings sustainability.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified industrial end markets
China Starch serves multiple durable end markets (food, feed, paper, textiles, pharma), reducing reliance on any single sector. That breadth provides steady baseline demand and revenue diversification, while deep-processing capabilities capture more value across product lines over cycles.
Read all positive factors

China Starch Holdings Limited (3838) vs. iShares MSCI Hong Kong ETF (EWH)

China Starch Holdings Limited Business Overview & Revenue Model

Company Description
China Starch Holdings Limited, an investment holding company, manufactures and sells cornstarch, lysine, starch-based sweeteners, modified starch, and ancillary corn-based and corn-refined products in the People’s Republic of China. The company op...
How the Company Makes Money
The company primarily makes money by processing corn into value-added products and selling them to industrial and commercial customers. Key revenue streams include: (1) Sales of cornstarch and modified/processed starch products used as ingredients...

China Starch Holdings Limited Financial Statement Overview

Summary
Overall financials are weakened by a sharp 2025 downturn and volatile cash generation. Profitability fell materially (revenue down ~10%, gross margin ~5.0% vs ~10.2%, net income HK$180m vs HK$482m), and operating cash flow dropped to ~HK$293m with free cash flow turning negative (~-HK$37m). The balance sheet is a relative strength with moderate leverage (debt-to-equity ~0.26), but ROE fell to ~4.2% due to the earnings reset.
Income Statement
44
Neutral
Balance Sheet
70
Positive
Cash Flow
38
Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue10.06B11.42B11.80B11.95B11.64B
Gross Profit540.94M1.16B556.57M1.19B952.21M
EBITDA517.52M1.08B458.94M910.39M777.84M
Net Income184.93M482.25M107.96M352.01M345.60M
Balance Sheet
Total Assets6.83B6.96B5.35B5.11B4.72B
Cash, Cash Equivalents and Short-Term Investments2.86B2.21B899.83M1.00B1.00B
Total Debt1.09B1.48B559.37M285.93M111.61M
Total Liabilities2.17B2.47B1.42B1.28B1.23B
Stockholders Equity4.24B4.11B3.66B3.60B3.28B
Cash Flow
Free Cash Flow-36.65M1.06B-8.26M105.70M694.06M
Operating Cash Flow292.79M1.32B413.37M316.83M1.11B
Investing Cash Flow-329.60M-857.09M-719.94M-349.47M-387.02M
Financing Cash Flow-465.57M850.55M203.41M34.65M-60.44M

China Starch Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.18
Price Trends
50DMA
0.17
Positive
100DMA
0.17
Positive
200DMA
0.17
Positive
Market Momentum
MACD
<0.01
Negative
RSI
75.70
Negative
STOCH
98.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3838, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.17, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 75.70 is Negative, neither overbought nor oversold. The STOCH value of 98.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3838.

China Starch Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
57
Neutral
HK$1.05B4.914.38%5.38%-11.88%-61.92%
48
Neutral
HK$672.04M-256.770.81%0.00%-8.65%-112.54%
46
Neutral
HK$494.26M-5.98-3.27%15.38%0.78%-360.00%
45
Neutral
HK$71.34M-0.63-21.93%30.41%98.08%
42
Neutral
HK$655.49M2.90-11.47%13.86%-83.35%
41
Neutral
HK$92.71M-0.66-21.24%-234.18%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3838
China Starch Holdings Limited
0.18
-0.02
-12.00%
HK:1583
Qinqin Foodstuffs Group (Cayman) Company
0.89
-0.41
-31.75%
HK:3889
Global Sweeteners Holdings Limited
0.05
-0.06
-56.31%
HK:0809
Global Bio-chem Technology Group Co. Ltd.
0.42
-0.44
-51.16%
HK:0829
Shenguan Holdings (Group) Limited
0.15
-0.16
-51.75%
HK:0841
Asia Cassava Resources Holdings Limited
0.12
0.03
32.61%

China Starch Holdings Limited Corporate Events

China Starch warns of interim loss as lysine, cornstarch markets slump
Jun 22, 2026
China Starch Holdings has warned that it expects to swing to a pre-tax loss of about RMB20 million for the five months to 31 May 2026, compared with a pre-tax profit of RMB267 million a year earlier, with loss attributable to shareholders estimate...
China Starch Shareholders Approve 2026 AGM Resolutions and Board Changes
May 12, 2026
China Starch Holdings Limited reported that all ordinary resolutions put to shareholders at its 2026 annual general meeting on 12 May were passed by poll, including approval of the 2025 audited financial statements and the declaration of a final d...
China Starch Clarifies Board and Committee Structure to Strengthen Governance
May 12, 2026
China Starch Holdings Limited has disclosed the composition of its board of directors and the allocation of roles across its key governance committees. The board includes four executive directors and three independent non-executive directors, refl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2026