Interested In China Huirong Financial Holdings Limited (HKG:1290)? Here's What Its Recent Performance Looks Like
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Understanding how China Huirong Financial Holdings Limited (HKG:1290) is performing as a company requires looking at more than just a years' earnings. Today I will run you through a basic sense check to gain perspective on how China Huirong Financial Holdings is doing by comparing its latest earnings with its long-term trend as well as the performance of its consumer finance industry peers.
See our latest analysis for China Huirong Financial Holdings
Commentary On 1290's Past Performance
1290's trailing twelve-month earnings (from 31 December 2018) of CN¥61m has jumped 20% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -27%, indicating the rate at which 1290 is growing has accelerated. What's enabled this growth? Let's take a look at if it is solely owing to an industry uplift, or if China Huirong Financial Holdings has seen some company-specific growth.
In terms of returns from investment, China Huirong Financial Holdings has fallen short of achieving a 20% return on equity (ROE), recording 3.8% instead. Furthermore, its return on assets (ROA) of 4.1% is below the HK Consumer Finance industry of 5.8%, indicating China Huirong Financial Holdings's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for China Huirong Financial Holdings’s debt level, has declined over the past 3 years from 9.5% to 6.7%.
What does this mean?
Though China Huirong Financial Holdings's past data is helpful, it is only one aspect of my investment thesis. Recent positive growth isn't always indicative of a continued optimistic outlook. You should continue to research China Huirong Financial Holdings to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for 1290’s future growth? Take a look at our free research report of analyst consensus for 1290’s outlook.
Financial Health: Are 1290’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 December 2018. This may not be consistent with full year annual report figures.
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.
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. Thank you for reading.
