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A & S Group (Holdings) Limited (HKG:1737) shareholders should be happy to see the share price up 16% in the last month. But that’s small comfort given the dismal price performance over the last year. Like an arid lake in a warming world, shareholder value has evaporated, with the share price down 61% in that time. The share price recovery is not so impressive when you consider the fall. You could argue that the sell-off was too severe.
View our latest analysis for A & S Group (Holdings)
Given that A & S Group (Holdings) only made minimal earnings in the last twelve months, we’ll focus on revenue to gauge its business development. As a general rule, if the market is looking past earnings to focus on revenue, there is a hope for, or expectation of, strong growth. The main reason for this is that fast revenue growth can be readily extrapolated into a profitable future, but stagnant revenue cannot.
A & S Group (Holdings) grew its revenue by 1.2% over the last year. While that may seem decent it isn’t great considering the company is still making a loss. Without profits, and with revenue growth sluggish, you get a 61% loss for shareholders, over the year. We’d want to see evidence that future revenue growth will be stronger before getting too interested. When a stock falls hard like this, it can signal an over-reaction. Our preference is to wait for a fundamental improvements before buying, but now could be a good time for some research.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
A & S Group (Holdings) shareholders are down 61% for the year, even worse than the market loss of 8.5%. There’s no doubt that’s a disappointment, but the stock may well have fared better in a stronger market. Putting aside the last twelve months, it’s good to see the share price has rebounded by 7.8%, in the last ninety days. Let’s just hope this isn’t the widely-feared ‘dead cat bounce’ (which would indicate further declines to come). Is A & S Group (Holdings) cheap compared to other companies? These 3 valuation measures might help you decide.
We will like A & S Group (Holdings) better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.