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Analyzing Shenzhou International Group Holdings Limited's (HKG:2313) 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 2313's recent performance announced on 31 December 2018 and compare these figures to its long-term trend and industry movements.

View our latest analysis for Shenzhou International Group Holdings

Were 2313's earnings stronger than its past performances and the industry?

2313's trailing twelve-month earnings (from 31 December 2018) of CN¥4.5b has jumped 21% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 20%, indicating the rate at which 2313 is growing has accelerated. What's enabled this growth? Let's take a look at whether it is only a result of an industry uplift, or if Shenzhou International Group Holdings has experienced some company-specific growth.

In terms of returns from investment, Shenzhou International Group Holdings has invested its equity funds well leading to a 20% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 16% exceeds the HK Luxury industry of 5.8%, indicating Shenzhou International Group Holdings has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Shenzhou International Group Holdings’s debt level, has increased over the past 3 years from 16% to 20%.

What does this mean?

Though Shenzhou International Group Holdings's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Shenzhou International Group Holdings gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Shenzhou International Group Holdings to get a more holistic view of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for 2313’s future growth? Take a look at our free research report of analyst consensus for 2313’s outlook.

2. Financial Health: Are 2313’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.