Investors Who Bought Imperial Pacific International Holdings (HKG:1076) Shares Five Years Ago Are Now Up 235%

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Imperial Pacific International Holdings Limited (HKG:1076) shareholders might be concerned after seeing the share price drop 12% in the last week. But that doesn’t change the fact that the returns over the last five years have been very strong. Indeed, the share price is up an impressive 235% in that time. To some, the recent pullback wouldn’t be surprising after such a fast rise. Ultimately business performance will determine whether the stock price continues the positive long term trend.

See our latest analysis for Imperial Pacific International Holdings

Because Imperial Pacific International Holdings is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 5 years Imperial Pacific International Holdings saw its revenue grow at 58% per year. Even measured against other revenue-focussed companies, that’s a good result. Meanwhile, its share price performance certainly reflects the strong growth, given the share price grew at 27% per year, compound, during the period. This suggests the market has well and truly recognized the progress the business has made. Imperial Pacific International Holdings seems like a high growth stock – so growth investors might want to add it to their watchlist.

Depicted in the graphic below, you’ll see revenue and earnings over time. If you want more detail, you can click on the chart itself.

SEHK:1076 Income Statement, March 13th 2019
SEHK:1076 Income Statement, March 13th 2019

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. Dive deeper into the earnings by checking this interactive graph of Imperial Pacific International Holdings’s earnings, revenue and cash flow.

A Different Perspective

We regret to report that Imperial Pacific International Holdings shareholders are down 33% for the year. Unfortunately, that’s worse than the broader market decline of 8.5%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there’s a good opportunity. On the bright side, long term shareholders have made money, with a gain of 27% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Imperial Pacific International Holdings by clicking this link.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

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.

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