China Starch Holdings Limited (3838) AI Stock Analysis

• Market Cap: HK$1.18B
• Dividend Yield: 3.47%
• Average Volume (3M): 4.63M
• Price to Earnings (P/E): 2.3
• Beta (1Y): 0.62
• Revenue Growth: -5.08%
• EPS Growth: 359.16%
• Country: HK
• Employees: 2,209
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Packaged Foods
• EPS (TTM): 0.05
• Shares Outstanding: 5,964,492,000
• 10 Day Avg. Volume: 5,992,000
• 30 Day Avg. Volume: 4,632,225
• PEG Ratio: 0.06
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.27
• 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

• Rating: 63 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

China Starch Holdings' stock is primarily supported by its strong valuation, indicating potential undervaluation. Financial performance shows resilience but highlights areas needing improvement, particularly cash flow. Technical indicators suggest neutral momentum with no immediate risks or opportunities.

China Starch Holdings Limited Business Overview & Revenue Model

Company Description

China Starch Holdings Limited (3838) is a leading company engaged in the production and sale of cornstarch and its derivative products. The company operates primarily in the sectors of food and beverage, pharmaceuticals, and chemical manufacturing. Its core products include cornstarch, glucose, maltose, and other starch-based products that are used as essential ingredients in various industries.

How the Company Makes Money

China Starch Holdings Limited generates revenue through the production and sale of its cornstarch and derivative products. The company sources raw materials, primarily corn, and processes it into starch and other related products. These products are then sold to a diverse range of industries including food and beverage manufacturers, pharmaceutical companies, and chemical producers. The company may also engage in strategic partnerships and contracts to secure consistent demand and supply chain efficiencies. The key revenue streams include direct sales to manufacturers and sales through distribution networks that reach various end-user industries. Factors such as global demand for starch products, raw material prices, and operational efficiencies significantly contribute to the company's earnings.

China Starch Holdings Limited Financial Statement Overview

Summary

China Starch Holdings shows strong profitability and debt management, but faces challenges with revenue growth and cash flow generation. The company benefits from a solid equity base but needs to improve cash flow for long-term financial 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
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
	EBIT
815.94M	157.47M	607.33M	510.54M	261.50M
	EBITDA
1.08B	458.94M	910.39M	777.84M	527.60M
	Net Income Common Stockholders
482.25M	107.96M	495.43M	345.60M	190.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.21B	899.83M	1.00B	1.00B	352.03M
	Total Assets
6.96B	5.35B	5.11B	4.72B	4.57B
	Total Debt
1.48B	559.37M	285.93M	120.04M	127.95M
	Net Debt
-730.31M	-340.46M	-717.06M	-880.93M	-213.68M
	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: Negative
• RSI: Neutral
• STOCH: 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 0.2 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.18, and above the 200-day MA of 0.19, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 68.90 is Neutral, neither overbought nor oversold. The STOCH value of 105.56 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1066	77 Outperform	$27.41B	12.27	8.95%	4.46%	-3.09%	0.67%
3899	75 Outperform	$12.92B	10.85	9.63%	4.71%	2.96%	-4.32%
3839	66 Neutral	$463.59M	3.33	7.60%	―	76.15%	334.56%
Sector *	65 Neutral	$8.81B	14.92	4.67%	6.17%	3.60%	-2.89%
3838	63 Neutral	HK$1.18B	2.26	12.45%	3.47%	-5.08%	359.16%
6068	57 Neutral	HK$231.81M	2.13	16.80%	51.40%	-41.24%	-36.17%
1689	48 Neutral	HK$469.96M	―	-42.10%	―	-7.48%	-168.99%

China Starch Holdings Limited Corporate Events

China Starch Holdings Clarifies Ownership in Machinery Acquisition

China Starch Holdings Limited has announced a supplemental disclosure regarding its acquisition of machinery, providing additional information about the ownership of Shanghai Senon. The announcement clarifies that Shanghai Senon is primarily owned by Shen Zhiping and nine other individuals, all independent of China Starch Holdings, ensuring transparency and compliance with disclosure requirements.

China Starch Holdings Announces RMB80 Million Construction Contract

China Starch Holdings Limited announced that its subsidiary, DGC, has entered into a construction contract with Juneng Construction for the development of a construction facility in Linqing City, Shandong Province, China. The contract, valued at RMB80 million, is classified as a discloseable transaction under the Hong Kong Stock Exchange’s listing rules, indicating a significant investment in the company’s infrastructure aimed at enhancing its operational capabilities.

China Starch Holdings Expands Production with New Machinery Acquisitions

China Starch Holdings Limited, through its subsidiary Golden Corn Biotech, has engaged in multiple machinery acquisition contracts with Shanghai Senon and Qidong Senon, totaling approximately RMB51.5 million, to support production expansion. The latest acquisition by another subsidiary, DGC, involves a RMB20.6 million contract with Shanghai Senon, which, when aggregated with previous contracts, constitutes a discloseable transaction under the Hong Kong Listing Rules, indicating strategic growth and investment in production capabilities.

China Starch Holdings Limited Passes All Resolutions at 2025 AGM

China Starch Holdings Limited successfully held its 2025 Annual General Meeting on May 20, where all proposed ordinary resolutions were passed by shareholder vote. Key resolutions included the approval of financial statements, declaration of a final dividend, re-election of directors, and granting mandates for share issuance and buyback. This outcome reflects shareholder confidence and supports the company’s strategic initiatives and governance structure.

China Starch Holdings Announces 2025 AGM Agenda

China Starch Holdings Limited has announced its upcoming annual general meeting (AGM) scheduled for May 20, 2025, in Hong Kong. The AGM will address several key business items, including the approval of the audited financial statements for 2024, declaration of a final dividend, re-election of directors, and re-appointment of the auditor. These actions are expected to impact the company’s governance and financial planning, potentially influencing stakeholder confidence and market positioning.

China Starch Holdings Reports Strong Profit Growth Despite Revenue Dip

China Starch Holdings Limited announced its annual results for the year ended December 31, 2024, reporting a revenue of RMB 11.42 billion, a slight decrease of 3.2% from the previous year. Despite the drop in revenue, the company achieved significant growth in profitability, with gross profit increasing by 109% and operating profit surging by 418.2%. The profit attributable to shareholders rose by 346.7%, reflecting improved operational efficiency and cost management. The proposed final dividend per share also increased by 42%, indicating a positive outlook for shareholders.

China Starch Holdings Announces Final Dividend for 2024

China Starch Holdings Limited has announced a final cash dividend of HKD 0.0098 per share for the financial year ending 31 December 2024. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders, with the dividend payment scheduled for 16 July 2025.