A financial expert claimed that China's Sinostar Group Company Limited may be a good investment this year due to hefty return on investments. It was explained that the compensation and measure of performance of the firm showed constant positive returns including its chief executive officer's (CEO's) pay levels.
According to financial technology startup Simply Wall St, since Xing Quiao became the new CEO of China's Sinostar Group Company Limited in 2014, CEO compensation has been comparatively higher compared to those received by CEOs from similar-sized companies.
The report claimed that the company is now worth 123 million Hong Kong dollars and that the total annual CEO compensation for the entity is valued at 2.8 million Hong Kong dollars for 2019 alone.
It was then explained that CEO compensation is a form of salary given to the officers of the said company. Then, the report claimed that companies with market capitalizations under 1.6 billion Hong Kong dollars only generated a median amount of CEO compensation at 1.8 million Hong Kong dollars.
The report then cited that Sinostar Group Company Limited's Ceo Xing has been receiving a total CEO compensation that is significantly higher than other groups of companies at the median market. The other companies that the report compared to the entity were similar-sized entities. However, it was noted that CEO compensation may not be significantly high when compared to the performance of the business in its respective industry.
The earnings per share (EPS) of China Sinostar Group Company Limited was said to be at an average of 26 percent per year. It was further revealed that its revenues have been up by 174 percent in 2019 alone.
The report then explained that the company has significantly improved in the market over the last few years that gives shareholders the impression that Sinostar Group Company Limited is a good investment. It was further explained that the CEO remuneration paid by the entity to its corporate officers were better than those received by other companies,
The said returns to the investors over the same period was, however, frowned upon in the report It was revealed that the per-share profit growth of the entity had weaker returns despite the value of the CEO compensations.
Sinostar Group Company Limited is a Mainboard-listed group that creates and supplies downstream petrochemical products in China. According to a profit report, the entity incurred a 37.5 percent increase in net profit at 113.7 million yuan in 2019 alone.
