For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Sino Haijing Holdings Limited (SEHK:1106) useful as an attempt to give more color around how Sino Haijing Holdings is currently performing. Check out our latest analysis for Sino Haijing Holdings

Was 1106 weak performance lately part of a long-term decline?

To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This allows me to assess many different companies on a similar basis, using new information. For Sino Haijing Holdings, its most recent trailing-twelve-month earnings is -HK$93.38M, which, relative to the previous year’s figure, has become more negative. Given that these values may be somewhat short-term, I have computed an annualized five-year value for 1106’s earnings, which stands at -HK$28.27M. This doesn’t look much better, as earnings seem to have steadily been getting more and more negative over time.

We can further assess Sino Haijing Holdings’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Sino Haijing Holdings’s top-line has increased by a mere 3.27%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Inspecting growth from a sector-level, the HK packaging industry has been growing its average earnings by double-digit 35.94% over the prior year, . This is a turnaround from a volatile drop of -5.86% in the past couple of years. This shows that whatever tailwind the industry is profiting from, Sino Haijing Holdings has not been able to gain as much as its industry peers.

What does this mean?

Sino Haijing Holdings’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to forecast what will occur going forward, and when. The most valuable step is to examine company-specific issues Sino Haijing Holdings may be facing and whether management guidance has dependably been met in the past. I recommend you continue to research Sino Haijing Holdings to get a more holistic view of the stock by looking at: