Health and Happiness (H&H) International Holdings Limited (HKG:1112): Has Recent Earnings Growth Beaten Long-Term Trend?
Examining Health and Happiness (H&H) International Holdings Limited's (SEHK:1112) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess 1112's latest performance announced on 30 June 2019 and compare these figures to its longer term trend and industry movements.
See our latest analysis for Health and Happiness (H&H) International Holdings
Commentary On 1112's Past Performance
1112's trailing twelve-month earnings (from 30 June 2019) of CN¥1.2b has jumped 28% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 12%, indicating the rate at which 1112 is growing has accelerated. How has it been able to do this? Let's take a look at whether it is only owing to an industry uplift, or if Health and Happiness (H&H) International Holdings has experienced some company-specific growth.
In terms of returns from investment, Health and Happiness (H&H) International Holdings has invested its equity funds well leading to a 22% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 9.9% exceeds the HK Food industry of 5.8%, indicating Health and Happiness (H&H) International Holdings has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Health and Happiness (H&H) International Holdings’s debt level, has increased over the past 3 years from 12% to 18%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Health and Happiness (H&H) International Holdings to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for 1112’s future growth? Take a look at our free research report of analyst consensus for 1112’s outlook.
Financial Health: Are 1112’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.
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.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2019. This may not be consistent with full year annual report figures.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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