In This Article:
After looking at Ming Fai International Holdings Limited's (HKG:3828) latest earnings announcement (31 December 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether Ming Fai International Holdings's performance has been impacted by industry movements. In this article I briefly touch on my key findings.
View our latest analysis for Ming Fai International Holdings
Was 3828's weak performance lately a part of a long-term decline?
3828's trailing twelve-month earnings (from 31 December 2018) of HK$100m has declined by -8.0% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 23%, indicating the rate at which 3828 is growing has slowed down. Why could this be happening? Let's examine what's going on with margins and if the whole industry is feeling the heat.
In terms of returns from investment, Ming Fai International Holdings has fallen short of achieving a 20% return on equity (ROE), recording 8.8% instead. Furthermore, its return on assets (ROA) of 5.9% is below the HK Personal Products industry of 6.4%, indicating Ming Fai International Holdings's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Ming Fai International Holdings’s debt level, has increased over the past 3 years from 10% to 11%.
What does this mean?
Ming Fai International Holdings's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors influencing its business. You should continue to research Ming Fai International Holdings 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 3828’s future growth? Take a look at our free research report of analyst consensus for 3828’s outlook.
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Financial Health: Are 3828’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.