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Examining JNBY Design Limited’s (SEHK:3306) 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 3306’s latest performance announced on 31 December 2017 and weigh these figures against its longer term trend and industry movements. See our latest analysis for JNBY Design
Did 3306’s recent earnings growth beat the long-term trend and the industry?
For the purpose of this commentary, I like to 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 analyze various companies on a similar basis, using new information. For JNBY Design, its most recent earnings (trailing twelve month) is CN¥415.53M, which, relative to last year’s figure, has jumped up by 46.61%. Since these figures may be fairly myopic, I’ve estimated an annualized five-year value for JNBY Design’s earnings, which stands at CN¥279.56M This suggests that, generally, JNBY Design has been able to increasingly grow its bottom line over the past couple of years as well.
How has it been able to do this? Well, let’s take a look at if it is only due to an industry uplift, or if JNBY Design has seen some company-specific growth. In the past few years, JNBY Design increased its bottom line faster than revenue by successfully controlling its costs. This has caused a margin expansion and profitability over time. Eyeballing growth from a sector-level, the HK luxury industry has been growing its average earnings by double-digit 12.73% in the prior year, . This is a turnaround from a volatile drop of -3.95% in the last couple of years. This means in the recent industry expansion, JNBY Design is able to leverage this to its advantage.
What does this mean?
While past data is useful, it doesn’t tell the whole story. 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 JNBY Design to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for 3306’s future growth? Take a look at our free research report of analyst consensus for 3306’s outlook.
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Financial Health: Is 3306’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.
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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 2017. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.