Has Xingfa Aluminium Holdings Limited (HKG:98) Improved Earnings Growth In Recent Times?
Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. Below, I will assess Xingfa Aluminium Holdings Limited’s (SEHK:98) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. View our latest analysis for Xingfa Aluminium Holdings
How Did 98’s Recent Performance Stack Up Against Its Past?
For the most up-to-date info, I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This allows me to assess various companies in a uniform manner using the latest information. For Xingfa Aluminium Holdings, its most recent bottom-line (trailing twelve month) is CN¥382.63M, which compared to the prior year’s figure, has increased by 28.19%. Since these figures may be relatively nearsighted, I’ve estimated an annualized five-year value for Xingfa Aluminium Holdings’s earnings, which stands at CN¥184.61M This means that, generally, Xingfa Aluminium Holdings has been able to gradually raise its profits over the last few years as well.
What’s the driver of this growth? Let’s take a look at whether it is only attributable to industry tailwinds, or if Xingfa Aluminium Holdings has seen some company-specific growth. Over the past few years, Xingfa Aluminium Holdings increased its bottom line faster than revenue by efficiently controlling its costs. This has led to a margin expansion and profitability over time. Inspecting growth from a sector-level, the HK metals and mining industry has been multiplying average earnings growth of 53.96% over the past year, . This is a a substantial turnaround from a volatile drop of -6.64% in the previous couple of years. This means in the recent industry expansion, Xingfa Aluminium Holdings has not been able to reap as much as its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Xingfa Aluminium Holdings has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research Xingfa Aluminium Holdings to get a better picture of the stock by looking at:
Financial Health: Is 98’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 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.
