Interested In Yusei Holdings Limited (HKG:96)? Here’s What Its Recent Performance Looks Like
Assessing Yusei Holdings Limited’s (SEHK:96) 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 96’s recent performance announced on 30 June 2017 and evaluate these figures to its long-term trend and industry movements. View our latest analysis for Yusei Holdings
How 96 fared against its long-term earnings performance and its industry
To account for any quarterly or half-yearly updates, I 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 assess various companies on a more comparable basis, using the most relevant data points. For Yusei Holdings, its most recent earnings (trailing twelve month) is CN¥73.3M, which compared to last year’s level, has jumped up by 21.08%. Given that these figures may be fairly short-term, I’ve determined an annualized five-year value for Yusei Holdings’s net income, which stands at CN¥39.2M. This shows that, generally, Yusei Holdings has been able to increasingly grow its profits over the past few years as well.
What’s enabled this growth? Well, let’s take a look at if it is merely a result of an industry uplift, or if Yusei Holdings has experienced some company-specific growth. Over the last few years, Yusei Holdings expanded its bottom line faster than revenue by successfully controlling its costs. This has led to a margin expansion and profitability over time. Inspecting growth from a sector-level, the HK chemicals industry has been relatively flat in terms of earnings growth . Thought this is a bit of a change from a volatile drop of -11.94% in the previous few years. This means any near-term headwind the industry is experiencing, Yusei Holdings is less exposed compared to its peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Yusei Holdings has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Yusei Holdings to get a better picture of the stock by looking at:
1. Financial Health: Is 96’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.
2. 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 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.
