Yahoo Finance Interested In Anhui Conch Cement Company Limited (HKG:914)? Here's What Its Recent Performance Looks Like
In this article, I will take a look at Anhui Conch Cement Company Limited's (SEHK:914) most recent earnings update (31 March 2020) and compare these latest figures against its performance over the past few years, along with how the rest of 914's industry performed. As a long-term investor, I find it useful to analyze the company's trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time.
See our latest analysis for Anhui Conch Cement
Did 914 beat its long-term earnings growth trend and its industry?
914's trailing twelve-month earnings (from 31 March 2020) of CN¥32b has increased by 4.2% 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 35%, indicating the rate at which 914 is growing has slowed down. What could be happening here? Well, let’s take a look at what’s occurring with margins and whether the rest of the industry is feeling the heat.
In terms of returns from investment, Anhui Conch Cement has invested its equity funds well leading to a 22% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 17% exceeds the HK Basic Materials industry of 9.0%, indicating Anhui Conch Cement has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Anhui Conch Cement’s debt level, has increased over the past 3 years from 13% to 26%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 27% to 6.7% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Anhui Conch Cement gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Anhui Conch Cement to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for 914’s future growth? Take a look at our free research report of analyst consensus for 914’s outlook.
Financial Health: Are 914’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 2020. This may not be consistent with full year annual report figures.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.
