With A -9.7% Earnings Drop, Did Sun Hing Vision Group Holdings Limited (HKG:125) Really Underperform?
Assessing Sun Hing Vision Group Holdings Limited’s (HKG:125) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess 125’s recent performance announced on 31 March 2018 and evaluate these figures to its long-term trend and industry movements.
View our latest analysis for Sun Hing Vision Group Holdings
Did 125 perform worse than its track record and industry?
125’s trailing twelve-month earnings (from 31 March 2018) of HK$64m has declined by -9.7% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 7.2%, indicating the rate at which 125 is growing has slowed down. Why is this? Well, let’s look at what’s occurring with margins and if the entire industry is experiencing the hit as well.
In terms of returns from investment, Sun Hing Vision Group Holdings has fallen short of achieving a 20% return on equity (ROE), recording 6.9% instead. Furthermore, its return on assets (ROA) of 5.4% is below the HK Luxury industry of 6.2%, indicating Sun Hing Vision Group Holdings’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Sun Hing Vision Group Holdings’s debt level, has declined over the past 3 years from 8.4% to 7.0%.
What does this mean?
Sun Hing Vision Group Holdings’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that are profitable, but have unpredictable earnings, can have many factors influencing its business. I suggest you continue to research Sun Hing Vision Group Holdings to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for 125’s future growth? Take a look at our free research report of analyst consensus for 125’s outlook.
Financial Health: Are 125’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
