Assessing Seamless Green China (Holdings) Limited’s (SEHK:8150) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess 8150’s recent performance announced on 30 September 2017 and evaluate these figures to its longer term trend and industry movements. See our latest analysis for Seamless Green China (Holdings)
Did 8150 perform worse than its track record and industry?
For the most up-to-date info, I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This allows me to examine different stocks in a uniform manner using the latest information. Seamless Green China (Holdings)’s most recent bottom-line -HK$24.9M, which, in comparison to the prior year’s figure, has become more negative. Given that these figures are fairly nearsighted, I’ve computed an annualized five-year value for 8150’s earnings, which stands at -HK$76.1M. This means despite the fact that net income is negative, it has become less negative over the years.
Additionally, we can examine Seamless Green China (Holdings)’s loss by looking at what has been happening in the industry on top of within the company. First, I want to quickly look into the line items. Revenue growth over the last couple of years has been negative at -16.81%. The key to profitability here is to make sure the company’s cost growth is well-managed. Viewing growth from a sector-level, the HK luxury industry has been growing its average earnings by double-digit 43.31% in the prior year, . This is a change from a volatile drop of -19.66% in the past few years. This means any uplift the industry is profiting from, Seamless Green China (Holdings) has not been able to realize the gains unlike its average peer.
What does this mean?
Though Seamless Green China (Holdings)’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always difficult to predict what will happen in the future and when. The most useful step is to examine company-specific issues Seamless Green China (Holdings) may be facing and whether management guidance has dependably been met in the past. You should continue to research Seamless Green China (Holdings) to get a more holistic view of the stock by looking at:
1. Financial Health: Is 8150’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.