Has Xinyi Glass Holdings Limited (HKG:868) Improved Earnings Growth In Recent Times?
For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Xinyi Glass Holdings Limited (HKG:868) useful as an attempt to give more color around how Xinyi Glass Holdings is currently performing.
Check out our latest analysis for Xinyi Glass Holdings
Did 868 beat its long-term earnings growth trend and its industry?
868’s trailing twelve-month earnings (from 30 June 2018) of HK$4.4b has jumped 26% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 15%, indicating the rate at which 868 is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is merely owing to industry tailwinds, or if Xinyi Glass Holdings has seen some company-specific growth.
In terms of returns from investment, Xinyi Glass Holdings has invested its equity funds well leading to a 24% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 14% exceeds the HK Auto Components industry of 6.8%, indicating Xinyi Glass Holdings has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Xinyi Glass Holdings’s debt level, has increased over the past 3 years from 9.0% to 18%.
What does this mean?
Though Xinyi Glass Holdings’s past data is helpful, it is only one aspect of my investment thesis. While Xinyi Glass Holdings has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research Xinyi Glass Holdings to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for 868’s future growth? Take a look at our free research report of analyst consensus for 868’s outlook.
Financial Health: Are 868’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.
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 30 June 2018. This may not be consistent with full year annual report figures.
To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.