Examining how Millennium Pacific Group Holdings Limited (SEHK:8147) is performing as a company requires looking at more than just a years’ earnings. Below, I will run you through a simple sense check to build perspective on how Millennium Pacific Group Holdings is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its electronic industry peers. View our latest analysis for Millennium Pacific Group Holdings
Commentary On 8147’s Past Performance
I prefer to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This technique enables me to examine various companies on a more comparable basis, using new information. For Millennium Pacific Group Holdings, its most recent earnings is -HK$27.9M, which, in comparison to the previous year’s level, has become less negative. Given that these figures may be somewhat short-term, I have determined an annualized five-year figure for 8147’s earnings, which stands at -HK$14.3M. This shows that, Millennium Pacific Group Holdings has historically performed better than recently, though it seems like earnings are now heading back towards a more favorable position once more.
Additionally, we can evaluate Millennium Pacific Group Holdings’s loss by looking at what has been happening in the industry as well as within the company. Initially, I want to quickly look into the line items. Revenue growth over the past few years has been negative at -45.53%. The key to profitability here is to make sure the company’s cost growth is well-managed. Eyeballing growth from a sector-level, the HK electronic industry has been growing its average earnings by double-digit 19.23% over the prior twelve months, and a more muted 7.49% over the past couple of years. This suggests that any uplift the industry is benefiting from, Millennium Pacific Group Holdings has not been able to reap as much as its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to predict what will happen in the future and when. The most useful step is to assess company-specific issues Millennium Pacific Group Holdings may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research Millennium Pacific Group Holdings to get a more holistic view of the stock by looking at: