Assessing Anxian Yuan China Holdings Limited’s (HKG:922) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess 922’s recent performance announced on 31 March 2018 and evaluate these figures to its longer term trend and industry movements. View out our latest analysis for Anxian Yuan China Holdings
How Well Did 922 Perform?
922 recently turned a profit of HK$16.73m (most recent trailing twelve-months) compared to its average loss of -HK$8.53m over the past five years.
In the past couple of years, Anxian Yuan China Holdings grew its bottom line faster than revenue by efficiently controlling its costs. This has led to a margin expansion and profitability over time. Eyeballing growth from a sector-level, the HK consumer services industry has been growing its average earnings by double-digit 36.96% over the prior twelve months, and 17.48% over the past half a decade. This suggests that whatever tailwind the industry is profiting from, Anxian Yuan China Holdings is able to amplify this to its advantage.
In terms of returns from investment, Anxian Yuan China Holdings has not invested its equity funds well, leading to a 2.51% return on equity (ROE), below the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 2.71% is below the HK Consumer Services industry of 8.70%, indicating Anxian Yuan China Holdings’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Anxian Yuan China Holdings’s debt level, has declined over the past 3 years from 6.44% to 3.67%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 36.95% to 38.14% over the past 5 years.
What does this mean?
Anxian Yuan China Holdings’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Anxian Yuan China 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 Anxian Yuan China Holdings to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for 922’s future growth? Take a look at our free research report of analyst consensus for 922’s outlook.
- Financial Health: Is 922’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 March 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.