Examining Sino Haijing Holdings Limited’s (SEHK:1106) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess 1106’s latest performance announced on 30 June 2017 and weight these figures against its longer term trend and industry movements. View our latest analysis for Sino Haijing Holdings
Did 1106 perform worse than its track record and industry?
To account for any quarterly or half-yearly updates, I 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 allows me to analyze many different companies in a uniform manner using new information. Sino Haijing Holdings’s latest twelve-month earnings -HK$93.4M, which, in comparison to last year’s level, has become more negative. Given that these figures may be somewhat myopic, I’ve estimated an annualized five-year value for Sino Haijing Holdings’s net income, which stands at -HK$26.1M. This doesn’t look much better, as earnings seem to have gradually been getting more and more negative over time.
We can further examine Sino Haijing Holdings’s loss by researching what’s going on in the industry along with within the company. First, I want to briefly look into the line items. Revenue growth over past couple of years has risen by a mere 3.15%. Given that top-line growth is also pretty stale the key to profitability moving forward would be controlling costs. Viewing growth from a sector-level, the HK packaging industry has been growing, albeit, at a subdued single-digit rate of 9.71% in the past twelve months, and 5.95% over the previous five years. This suggests that any tailwind the industry is profiting from, Sino Haijing Holdings has not been able to reap as much as its average peer.
What does this mean?
Sino Haijing Holdings’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to envisage what will happen in the future and when. The most insightful step is to examine company-specific issues Sino Haijing Holdings may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research Sino Haijing Holdings to get a better picture of the stock by looking at: