China Starch Holdings Limited (3838) AI Stock Analysis

• Market Cap: HK$1.18B
• Dividend Yield: 4.76%
• Average Volume (3M): 8.07M
• Price to Earnings (P/E): 2.6
• Beta (1Y): 0.70
• Revenue Growth: -6.58%
• EPS Growth: 16.23%
• Country: HK
• Employees: 2,209
• Sector: Consumer Defensive
• Sector Strength: 44
• Industry: Packaged Foods
• EPS (TTM): 0.03
• Shares Outstanding: 5,964,492,000
• 10 Day Avg. Volume: 5,519,326
• 30 Day Avg. Volume: 8,072,339
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

China Starch Holdings' overall score is driven by its strong valuation, with a low P/E ratio and high dividend yield, making it attractive for value and income investors. Financial performance shows resilience in profitability and debt management, but cash flow challenges need addressing. Technical indicators suggest a neutral market position with potential for upward movement.

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 through the production and sale of cornstarch and its derivatives. The company's key revenue streams are derived from selling these products to various sectors such as food processing, where they are used as thickening agents and sweeteners, as well as in pharmaceuticals and animal nutrition. The company's earnings are significantly influenced by agricultural production levels, commodity prices, and demand within its served markets. Strategic partnerships with distributors and end-users in diverse industries also play a critical role in expanding its market reach and enhancing revenue potential.

China Starch Holdings Limited Financial Statement Overview

Summary

China Starch Holdings shows strong debt management and equity utilization, indicated by a low debt-to-equity ratio and improved ROE. However, challenges in revenue growth and cash flow generation, with negative free cash flow and issues converting income into cash, hinder its financial stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.42B	11.80B	11.95B	11.64B	8.89B
Gross Profit	1.16B	556.57M	1.19B	952.21M	559.77M
EBITDA	1.08B	458.94M	910.39M	777.84M	527.60M
Net Income	482.25M	107.96M	495.43M	345.60M	190.12M
Balance Sheet
Total Assets	6.96B	5.35B	5.11B	4.72B	4.57B
Cash, Cash Equivalents and Short-Term Investments	2.21B	899.83M	1.00B	1.00B	352.03M
Total Debt	1.48B	559.37M	285.93M	120.04M	127.95M
Total Liabilities	2.47B	1.42B	1.28B	1.23B	1.43B
Stockholders Equity	4.11B	3.66B	3.60B	3.28B	2.98B
Cash Flow
Free Cash Flow	1.06B	-8.26M	105.70M	694.06M	-58.13M
Operating Cash Flow	1.32B	413.37M	316.83M	1.11B	255.24M
Investing Cash Flow	-857.09M	-719.94M	-349.47M	-387.02M	-39.63M
Financing Cash Flow	850.55M	203.41M	34.65M	-60.44M	-59.33M

China Starch Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.2 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.21, and above the 200-day MA of 0.19, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 57.77 is Neutral, neither overbought nor oversold. The STOCH value of 69.44 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3838	65 Neutral	HK$1.18B	2.61	10.38%	4.76%	-6.58%	16.23%
Sector *	62 Neutral	$20.53B	14.80	-2.69%	3.11%	1.95%	-4.97%
3GS	―	€19.79M	1.67		―	―	―
2317	77 Outperform	HK$1.07B	8.93	5.08%	8.88%	-1.19%	-9.05%
0809	48 Neutral	HK$819.48M	1.10		―	42.14%	-81.22%
0841	47 Neutral	HK$62.57M	―	-23.44%	―	-18.03%	-17.44%

China Starch Holdings Limited Corporate Events

China Starch Holdings Limited Reports Decline in First Half 2025 Revenue

China Starch Holdings Limited reported its unaudited consolidated interim results for the first half of 2025, showing a decrease in revenue to RMB 5,114,852, compared to the same period in 2024. Despite the decline in revenue, the company maintained profitability with a net income of RMB 225,636, although this was lower than the previous year’s figure. The results reflect challenges in cost management and market conditions, impacting the company’s financial performance.

China Starch Holdings Updates Nomination Committee Terms

China Starch Holdings Limited has updated the terms of reference for its Nomination Committee, which is a part of the Board of Directors. The Committee is responsible for overseeing the nomination process for board members, ensuring a diverse and independent board composition. This update reflects the company’s commitment to maintaining strong governance practices and could impact its strategic direction by ensuring a balanced and diverse leadership team.

China Starch Holdings to Review Interim Results and Dividend

China Starch Holdings Limited has announced that its board of directors will hold a meeting on August 20, 2025, to approve the publication of its interim results for the first half of 2025 and to consider the payment of an interim dividend. This announcement indicates the company’s ongoing commitment to transparency and shareholder value, potentially impacting its market positioning and stakeholder interests.