Today I will take a look at SuperRobotics Limited’s (SEHK:8176) most recent earnings update (30 September 2017) and compare these latest figures against its performance over the past few years, as well as how the rest of the personal products industry performed. As an investor, I find it beneficial to assess 8176’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time. View our latest analysis for SuperRobotics
Did 8176 beat its long-term earnings growth trend and its industry?
To account for any quarterly or half-yearly updates, I 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 technique enables me to analyze different stocks on a similar basis, using the most relevant data points. For SuperRobotics, its most recent bottom-line is -HK$51.4M, which compared to last year’s figure, has become less negative. Since these values are fairly nearsighted, I have calculated an annualized five-year figure for 8176’s earnings, which stands at -HK$69.5M. This shows that, despite the fact that net income is negative, it has become less negative over the years.
Additionally, we can assess SuperRobotics’s loss by researching what has been happening in the industry as well as within the company. Initially, I want to briefly look into the line items. Revenue growth over the past few years has grown by 13.36%, signalling that SuperRobotics is in a high-growth phase with expenses racing ahead high top-line growth rates, leading to yearly losses. Scanning growth from a sector-level, the HK personal products industry has been enduring severe headwinds over the last few years, leading to an average earnings drop of -33.43% in the most recent year. This suggests that while SuperRobotics is presently loss-making, any recent headwind the industry is enduring, the impact on SuperRobotics has been softer relative to its peers.
What does this mean?
Though SuperRobotics’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always difficult to forecast what will occur going forward, and when. The most insightful step is to assess company-specific issues SuperRobotics may be facing and whether management guidance has regularly been met in the past. You should continue to research SuperRobotics to get a more holistic view of the stock by looking at: