Was China Singyes Solar Technologies Holdings Limited’s (HKG:750) Earnings Growth Better Than The Industry’s?
Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at China Singyes Solar Technologies Holdings Limited’s (HKG:750) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
Check out our latest analysis for China Singyes Solar Technologies Holdings
How Well Did 750 Perform?
750’s trailing twelve-month earnings (from 30 June 2018) of CN¥292m has increased by 9.8% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -14%, indicating the rate at which 750 is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is only owing to an industry uplift, or if China Singyes Solar Technologies Holdings has experienced some company-specific growth.
In terms of returns from investment, China Singyes Solar Technologies Holdings has fallen short of achieving a 20% return on equity (ROE), recording 6.4% instead. Furthermore, its return on assets (ROA) of 5.2% is below the HK Construction industry of 5.6%, indicating China Singyes Solar Technologies Holdings’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for China Singyes Solar Technologies Holdings’s debt level, has declined over the past 3 years from 8.6% to 7.4%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 56% to 131% over the past 5 years.
What does this mean?
Though China Singyes Solar Technologies Holdings’s past data is helpful, it is only one aspect of my investment thesis. Recent positive growth doesn’t necessarily mean it’s onwards and upwards for the company. I recommend you continue to research China Singyes Solar Technologies Holdings to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for 750’s future growth? Take a look at our free research report of analyst consensus for 750’s outlook.
Financial Health: Are 750’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 30 June 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.
