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Examining Tradelink Electronic Commerce Limited's (HKG:536) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess 536's latest performance announced on 31 December 2018 and weigh these figures against its longer term trend and industry movements.

See our latest analysis for Tradelink Electronic Commerce

How Well Did 536 Perform?

536's trailing twelve-month earnings (from 31 December 2018) of HK$90m has jumped 21% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 1.2%, indicating the rate at which 536 is growing has accelerated. What's enabled this growth? Let's see if it is only owing to industry tailwinds, or if Tradelink Electronic Commerce has experienced some company-specific growth.

In terms of returns from investment, Tradelink Electronic Commerce has invested its equity funds well leading to a 26% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 15% exceeds the HK IT industry of 9.5%, indicating Tradelink Electronic Commerce has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Tradelink Electronic Commerce’s debt level, has increased over the past 3 years from 17% to 29%.

What does this mean?

Though Tradelink Electronic Commerce's past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research Tradelink Electronic Commerce to get a more holistic view of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for 536’s future growth? Take a look at our free research report of analyst consensus for 536’s outlook.

2. Financial Health: Are 536’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.

3. 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 2018. This may not be consistent with full year annual report figures.

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.