China Starch Holdings Limited (3838) AI Stock Analysis

• Market Cap: HK$1.09B
• Dividend Yield: 5.41%
• Average Volume (3M): 3.26M
• Price to Earnings (P/E): 2.4
• Beta (1Y): 0.68
• Revenue Growth: -6.58%
• EPS Growth: 16.23%
• Country: HK
• Employees: 2,209
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.03
• Shares Outstanding: 5,964,492,000
• 10 Day Avg. Volume: 2,746,831
• 30 Day Avg. Volume: 3,255,005
• PEG Ratio: <0.01
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 1.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: HK$0.19 ▲(6.67% Upside)

China Starch Holdings scores a 63, driven by its strong valuation metrics, including a low P/E ratio and high dividend yield. However, financial performance is mixed, with solid profitability and debt management overshadowed by cash flow challenges. Technical indicators suggest a bearish trend, which tempers the overall score.

Positive Factors

Debt Management

Low debt-to-equity ratio reflects prudent financial management, providing stability and flexibility to navigate market fluctuations.

Operational Efficiency

Improved EBITDA margin indicates enhanced operational efficiency, which can lead to better profitability and competitive positioning.

Equity Financing

A strong equity ratio enhances financial resilience, reducing reliance on debt and providing a stable foundation for growth.

Negative Factors

Revenue Growth Challenges

Declining revenue growth indicates potential market challenges or competitive pressures, which could impact long-term expansion.

Cash Flow Issues

Negative free cash flow suggests difficulties in generating cash, potentially limiting investment in growth and operational flexibility.

Net Profit Margin Fluctuations

Fluctuating net profit margins suggest instability in profitability, which could affect investor confidence and long-term financial health.

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 operates in two segments, Upstream Products, and Fermented and Downstream Products. It also researches, develops, manufactures, and sells food additives, feeds, amino acids, and related products; and glucose, maltose, dextrin, animal feed additives, food-grade enzymes, bio-based materials, lactate, and other related products. The company was incorporated in 2006 and is headquartered in Causeway Bay, Hong Kong. China Starch Holdings Limited is a subsidiary of Merry Boom Group Limited.

How the Company Makes Money

China Starch Holdings Limited generates revenue primarily through the sale of its starch products, which include corn starch, glucose, and other derivatives. The company benefits from a diversified customer base spanning various industries, which helps mitigate risks associated with market fluctuations. Key revenue streams include direct sales to manufacturers in food processing, paper production, and other industrial applications. Additionally, the company may engage in strategic partnerships and collaborations with other entities to expand its market reach and enhance product offerings. Factors contributing to its earnings include efficient production processes, strong demand for starch-based products, and a growing trend towards natural and sustainable ingredients in food and consumer goods.

China Starch Holdings Limited Financial Statement Overview

Summary

China Starch Holdings shows a mixed financial performance. Strong profitability and debt management are offset by challenges in revenue growth and cash flow generation. The company has a solid equity base but needs to address cash flow issues for long-term health.

Income Statement

China Starch Holdings has demonstrated a stable gross profit margin, with a notable increase in gross profit from 2023 to 2024. However, the revenue growth rate declined over the past year, and net profit margin has shown fluctuations, indicating some instability in achieving consistent profitability. EBITDA margin has improved, which suggests better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio remains low, indicating conservative leverage practices and financial stability. Return on Equity (ROE) has improved, reflecting effective use of equity to generate profits. The equity ratio shows a strong proportion of equity financing, enhancing the company's financial resilience. However, total liabilities have increased, which may pose potential risks if not managed properly.

Cash Flow

Cash flow metrics indicate challenges, with negative free cash flow in 2023 and 2024, raising concerns about cash generation ability. The operating cash flow to net income ratio is zero for 2024, indicating issues in converting income into cash. However, the company has managed to maintain positive operating cash flow in previous years, suggesting some capacity for operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.89B	11.42B	11.80B	11.95B	11.64B	8.89B
Gross Profit	1.08B	1.16B	556.57M	1.19B	952.21M	559.77M
EBITDA	1.02B	1.08B	458.94M	910.39M	777.84M	527.60M
Net Income	418.98M	482.25M	107.96M	352.01M	345.60M	190.12M
Balance Sheet
Total Assets	6.96B	6.96B	5.35B	5.11B	4.72B	4.57B
Cash, Cash Equivalents and Short-Term Investments	2.00B	2.21B	899.83M	1.00B	1.00B	352.03M
Total Debt	1.40B	1.48B	559.37M	285.93M	111.61M	127.95M
Total Liabilities	2.31B	2.47B	1.42B	1.28B	1.23B	1.43B
Stockholders Equity	4.20B	4.11B	3.66B	3.60B	3.28B	2.98B
Cash Flow
Free Cash Flow	540.15M	1.06B	-8.26M	105.70M	694.06M	-58.13M
Operating Cash Flow	749.44M	1.32B	413.37M	316.83M	1.11B	255.24M
Investing Cash Flow	-1.11B	-857.09M	-719.94M	-349.47M	-387.02M	-39.63M
Financing Cash Flow	1.26B	850.55M	203.41M	34.65M	-60.44M	-59.33M

China Starch Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3838, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.19, and below the 200-day MA of 0.19, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 39.97 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3838.

China Starch Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2317	72 Outperform	HK$974.55M	8.16	5.08%	10.28%	-1.19%	-9.05%
3838	63 Neutral	HK$1.09B	2.40	10.38%	5.41%	-6.58%	16.23%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0841	54 Neutral	HK$76.01M	-0.58	-20.08%	―	75.21%	18.42%
0809	44 Neutral	HK$1.28B	0.87	―	―	42.14%	-81.25%
3889	36 Underperform	HK$166.10M	―	―	―	-6.04%	-340.00%

China Starch Holdings Limited Corporate Events

China Starch Holdings Announces Thermal Plant Construction Contract

China Starch Holdings Limited announced that its subsidiary, DGC, has entered into a Thermal Plant Construction Contract with Juneng Construction for RMB70 million. This contract, along with a similar construction contract, constitutes a discloseable transaction under Hong Kong Stock Exchange rules due to the percentage ratios involved. Juneng Construction is deemed a connected person of the company, making this a connected transaction requiring independent shareholders’ approval.

China Starch Holdings Announces Board and Committee Changes

China Starch Holdings Limited announced changes in its board of directors and committee compositions. Mr. Sun Mingdao will retire as an independent non-executive director, and Professor Chen Zhijun will be appointed to the same position, as well as chairman of the Nomination Committee and a member of the Audit and Remuneration Committees. These changes are effective from October 15, 2025, and reflect a strategic shift in the company’s governance structure.

China Starch Holdings Limited Announces Board Composition

China Starch Holdings Limited announced the composition of its board of directors and their roles within the company. The board includes executive directors and independent non-executive directors, with specific members assigned to the audit, remuneration, and nomination committees. This announcement provides clarity on the governance structure, potentially impacting the company’s strategic direction and stakeholder confidence.

China Starch Holdings Secures Shareholder Approval for Construction Contract

China Starch Holdings Limited announced that the proposed resolution regarding the Construction Contract was approved by independent shareholders at the extraordinary general meeting held on October 9, 2025. The resolution received overwhelming support, with 99.99% of votes in favor, enabling the company to proceed with the construction-related transactions, which could potentially enhance its operational capabilities and market positioning.

China Starch Holdings Updates on RMB80 Million Construction Contract

China Starch Holdings Limited announced an update on a construction contract with Juneng Construction, valued at RMB80 million, for services related to a construction facility. The company has formed an Independent Board Committee and appointed Central China International Capital Limited as an Independent Financial Adviser to ensure compliance with corporate governance practices. An Extraordinary General Meeting (EGM) will be convened to seek approval from Independent Shareholders, and a circular with detailed information has been dispatched to shareholders.

China Starch Holdings Announces EGM to Approve Construction Contract

China Starch Holdings Limited has announced an Extraordinary General Meeting (EGM) to be held on October 9, 2025, in Hong Kong. The meeting will consider and potentially approve a construction contract and related transactions, which have been previously undertaken by the company’s directors. This development may impact the company’s operational strategies and stakeholder interests.