Want To Invest In China Maple Leaf Educational Systems Limited (HKG:1317)? Here’s How It Performed Lately
In this commentary, I will examine China Maple Leaf Educational Systems Limited’s (HKG:1317) latest earnings update (28 February 2018) and compare these figures against its performance over the past couple of years, as well as how the rest of the consumer services industry performed. As an investor, I find it beneficial to assess 1317’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time. Check out our latest analysis for China Maple Leaf Educational Systems
Were 1317’s earnings stronger than its past performances and the industry?
1317’s trailing twelve-month earnings (from 28 February 2018) of HK$466.31m has jumped 28.38% compared to the previous year. However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 40.50%, indicating the rate at which 1317 is growing has slowed down. To understand what’s happening, let’s take a look at what’s transpiring with margins and whether the entire industry is facing the same headwind.
In the past couple of years, revenue growth has been lagging behind which indicates that China Maple Leaf Educational Systems’s bottom line has been propelled by unmaintainable cost-reductions. Eyeballing growth from a sector-level, the HK consumer services industry has been
In terms of returns from investment, China Maple Leaf Educational Systems has not invested its equity funds well, leading to a 13.78% return on equity (ROE), below the sensible minimum of 20%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research China Maple Leaf Educational Systems to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for 1317’s future growth? Take a look at our free research report of analyst consensus for 1317’s outlook.
Financial Health: Is 1317’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 28 February 2018. 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.
