Analyzing China Creative Global Holdings Limited’s (SEHK:1678) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess 1678’s recent performance announced on 31 December 2017 and compare these figures to its long-term trend and industry movements. Check out our latest analysis for China Creative Global Holdings
Was 1678’s recent earnings decline indicative of a tough track record?
For the most up-to-date info, I use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This blend allows me to examine various companies on a similar basis, using new information. For China Creative Global Holdings, its latest earnings (trailing twelve month) is -CN¥174.55M, which compared to the prior year’s figure, has become more negative. Since these values may be relatively short-term, I’ve determined an annualized five-year value for China Creative Global Holdings’s earnings, which stands at CN¥183.90M.
We can further examine China Creative Global Holdings’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years China Creative Global Holdings has seen an annual decline in revenue of -17.04%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Viewing growth from a sector-level, the HK consumer durables industry has been growing its average earnings by double-digit 15.02% in the past twelve months, and 12.42% over the previous five years. This means whatever tailwind the industry is enjoying, China Creative Global Holdings has not been able to leverage it as much as its industry peers.
What does this mean?
China Creative Global Holdings’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that incur net loss is always difficult to envisage what will happen in the future and when. The most useful step is to assess company-specific issues China Creative Global Holdings may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research China Creative Global Holdings to get a better picture of the stock by looking at: