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Did HK Asia Holdings's (HKG:1723) Share Price Deserve to Gain 37%?

Simply Wall St

HK Asia Holdings Limited (HKG:1723) shareholders might be concerned after seeing the share price drop 22% in the last quarter. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. After all, the share price is up a market-beating 37% in that time.

View our latest analysis for HK Asia Holdings

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year HK Asia Holdings grew its earnings per share (EPS) by 46%. It's fair to say that the share price gain of 37% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about HK Asia Holdings as it was before. This could be an opportunity. Having said that, the market is still optimistic, given the P/E ratio of 60.45.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

SEHK:1723 Past and Future Earnings, December 3rd 2019

Dive deeper into HK Asia Holdings's key metrics by checking this interactive graph of HK Asia Holdings's earnings, revenue and cash flow.

A Different Perspective

HK Asia Holdings boasts a total shareholder return of 37% for the last year. Unfortunately the share price is down 22% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. Before spending more time on HK Asia Holdings it might be wise to click here to see if insiders have been buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.