Yahoo Finance Want To Invest In Liu Chong Hing Investment Limited (HKG:194)? Here’s How It Performed Lately
After looking at Liu Chong Hing Investment Limited’s (HKG:194) latest earnings update (30 June 2018), I found it helpful to revisit the company’s performance in the past couple of years and compare this against the latest numbers. As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is an important aspect. In this article I briefly touch on my key findings.
View our latest analysis for Liu Chong Hing Investment
Did 194 beat its long-term earnings growth trend and its industry?
194’s trailing twelve-month earnings (from 30 June 2018) of HK$829m has jumped 47% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 24%, indicating the rate at which 194 is growing has accelerated. What’s the driver of this growth? Well, let’s take a look at whether it is merely owing to industry tailwinds, or if Liu Chong Hing Investment has experienced some company-specific growth.
In terms of returns from investment, Liu Chong Hing Investment has fallen short of achieving a 20% return on equity (ROE), recording 7.1% instead.
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 Liu Chong Hing Investment gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Liu Chong Hing Investment to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for 194’s future growth? Take a look at our free research report of analyst consensus for 194’s outlook.
Financial Health: Are 194’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 30 June 2018. This may not be consistent with full year annual report figures.
To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
