China Starch Holdings Limited (3838) AI Stock Analysis

China Starch Holdings Limited

(HKEX:3838)

Select Model

Rating:60Neutral

Price Target:HKD 0.17▼(-1.16% Downside)

Action:reiterated

Date:09/25/26

The overall score is driven mainly by weakening and volatile financial performance, with declining revenue, pressured margins, and deteriorated cash flow in 2025 outweighing the support from a moderate debt load and growing equity base. Secondary factors include technically strong but stretched price action that may face consolidation, and a mixed valuation profile combining a high P/E with a relatively strong dividend yield.

Positive Factors

Moderate leverageModerate and improving leverage gives China Starch greater financial resilience while earnings recover. With equity of about HK$4.24bn against HK$6.83bn of assets, the company retains a meaningful capital base to support operations and manage cyclical fluctuations.

Negative Factors

Sharp profitability declineThe 2025 earnings contraction indicates that profitability remains highly exposed to pricing and cost conditions. Lower revenue, sharply compressed gross margin and reduced net income weaken internal funding capacity and make sustained returns harder to achieve over the next several quarters.

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

Market Cap: HKD 1.02B
Dividend Yield: 5.51%
Average Volume (3M): 5.19M
Price to Earnings (P/E): 48.6
Beta (1Y): 0.74
Revenue Growth: -5.24%
EPS Growth: -95.65%
Country: Hong Kong
Employees: 2,177
Sector: Consumer Defensive
Sector Strength: 62
Industry: Packaged Foods

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 opera...

How the Company Makes Money

China Starch Holdings Limited makes money primarily by manufacturing corn-based ingredients and selling them to industrial and consumer-facing manufacturers. Its revenue model is largely volume-driven, with earnings determined by sales volumes and th...

China Starch Holdings Limited Financial Statement Overview

Summary

Financial performance is mixed: revenues are in a multi-year decline, profitability and cash flows have become volatile and weakened in 2025, while a solid equity base and moderate leverage provide some support.

Income Statement

45Neutral

Balance Sheet

75Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.90B	10.06B	11.42B	11.80B	11.95B	11.64B
Gross Profit	221.21M	540.94M	1.16B	556.57M	1.19B	952.21M
EBITDA	186.41M	528.14M	1.10B	458.94M	910.39M	777.84M
Net Income	19.06M	184.93M	482.25M	107.96M	352.01M	345.60M
Balance Sheet
Total Assets	7.12B	6.83B	6.96B	5.35B	5.11B	4.72B
Cash, Cash Equivalents and Short-Term Investments	2.46B	2.86B	2.21B	899.83M	1.00B	1.00B
Total Debt	1.29B	1.09B	1.48B	559.37M	285.93M	111.61M
Total Liabilities	2.59B	2.17B	2.47B	1.42B	1.28B	1.23B
Stockholders Equity	4.16B	4.24B	4.11B	3.66B	3.60B	3.28B
Cash Flow
Free Cash Flow	-381.88M	-36.65M	1.06B	-8.26M	105.70M	694.06M
Operating Cash Flow	293.05M	292.79M	1.32B	413.37M	316.83M	1.11B
Investing Cash Flow	-154.71M	-329.60M	-857.09M	-719.94M	-349.47M	-387.02M
Financing Cash Flow	-255.42M	-465.57M	850.55M	203.41M	34.65M	-60.44M

China Starch Holdings Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price0.17

Price Trends

50DMA0.17Positive

100DMA0.17Positive

200DMA0.17Positive

Market Momentum

MACD0.00Negative

RSI59.80Neutral

STOCH115.77Negative

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 0.17 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.17, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of 0.00 indicates Negative momentum. The RSI at 59.80 is Neutral, neither overbought nor oversold. The STOCH value of 115.77 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

HK:3838 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HK:3838	60Neutral	HKD 1.03B	48.62	0.45%	5.51%	-5.24%	-95.65%
HK:3889	51Neutral	HKD 96.57M	-0.64	38.51%	―	-7.04%	8.69%
HK:0829	49Neutral	HKD 872.23M	-9.90	-3.49%	14.81%	5.96%	-252.05%
HK:0841	44Neutral	HKD 88.88M	-34.55	-0.49%	―	30.41%	98.08%
HK:0809	40Underperform	HKD 565.36M	1.73	-15.63%	―	-8.40%	-77.49%
HK:1583	38Underperform	HKD 785.30M	-32.69	-1.58%	3.28%	-6.49%	-294.24%

* Consumer Defensive Sector Average

Performance Comparison

HK:3838 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:3838	China Starch Holdings Limited	0.18	0.00	1.71%
HK:1583	Qinqin Foodstuffs Group (Cayman) Company Limited	1.04	-0.25	-19.63%
HK:3889	Global Sweeteners Holdings Limited	0.05	-0.04	-43.18%
HK:0809	Global Bio-chem Technology Group Co. Ltd.	0.34	-0.48	-58.43%
HK:0829	Shenguan Holdings (Group) Limited	0.27	0.00	0.00%
HK:0841	Asia Cassava Resources Holdings Limited	0.15	0.02	16.92%

China Starch Holdings Limited Corporate Events

China Starch Swings to Interim Loss Despite Stable Revenue

Aug 19, 2026

China Starch Holdings reported unaudited interim revenue of RMB5.02 billion for the six months ended 30 June 2026, broadly flat year-on-year, but gross profit fell sharply to RMB133.69 million as cost of sales rose. The group swung from a RMB297.13 m...

China Starch Sets August Board Meeting to Approve Interim Results and Consider Dividend

Aug 7, 2026

China Starch Holdings Limited has scheduled a board meeting for 19 August 2026 to review and approve the interim results of the company and its subsidiaries for the six months ended 30 June 2026. The board will also consider the possible declaration...

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: Sep 25, 2026

China Starch Holdings Limited AI Stock Analysis