Does China Greenland Broad Greenstate Group Company Limited’s (HKG:1253) Recent Track Record Look Strong?
For investors with a long-term horizon, assessing earnings trend over time and against industry benchmarks is more valuable than looking at a single earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on China Greenland Broad Greenstate Group Company Limited (SEHK:1253) useful as an attempt to give more color around how China Greenland Broad Greenstate Group is currently performing. View our latest analysis for China Greenland Broad Greenstate Group
How Did 1253’s Recent Performance Stack Up Against Its Past?
For the purpose of this commentary, I like to use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This technique enables me to analyze different companies in a uniform manner using the latest information. For China Greenland Broad Greenstate Group, its most recent trailing-twelve-month earnings is CN¥155.62M, which, against the prior year’s figure, has increased by a relatively muted 2.58%. Since these values are relatively short-term thinking, I’ve created an annualized five-year value for China Greenland Broad Greenstate Group’s earnings, which stands at CN¥118.11M This suggests that, generally, China Greenland Broad Greenstate Group has been able to consistently raise its earnings over the last few years as well.
What’s enabled this growth? Let’s take a look at whether it is only because of an industry uplift, or if China Greenland Broad Greenstate Group has seen some company-specific growth. The ascend in earnings seems to be driven by a solid top-line increase beating its growth rate of expenses. Though this resulted in a margin contraction, it has made China Greenland Broad Greenstate Group more profitable. Looking at growth from a sector-level, the HK commercial services industry has been growing, albeit, at a unexciting single-digit rate of 2.58% in the previous twelve months, and 4.80% over the previous five years.
What does this mean?
China Greenland Broad Greenstate Group’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While China Greenland Broad Greenstate Group has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research China Greenland Broad Greenstate Group to get a more holistic view of the stock by looking at:
Financial Health: Is 1253’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.
Valuation: What is 1253 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether 1253 is currently mispriced by the market.
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 December 2017. This may not be consistent with full year annual report figures.
To help readers see pass 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.
