Interested In China Pioneer Pharma Holdings Limited (HKG:1345)? Here's What Its Recent Performance Looks Like

Simply Wall St

For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. Investors may find my commentary, albeit very high-level and brief, on China Pioneer Pharma Holdings Limited (SEHK:1345) useful as an attempt to give more color around how China Pioneer Pharma Holdings is currently performing.

View our latest analysis for China Pioneer Pharma Holdings

Did 1345's recent earnings growth beat the long-term trend and the industry?

1345's trailing twelve-month earnings (from 31 December 2019) of CN¥105m has jumped 24% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -15%, indicating the rate at which 1345 is growing has accelerated. What's the driver of this growth? Well, let’s take a look at if it is only owing to industry tailwinds, or if China Pioneer Pharma Holdings has seen some company-specific growth.

SEHK:1345 Income Statement March 30th 2020

In terms of returns from investment, China Pioneer Pharma Holdings has fallen short of achieving a 20% return on equity (ROE), recording 9.1% instead. However, its return on assets (ROA) of 7.2% exceeds the HK Healthcare industry of 4.0%, indicating China Pioneer Pharma Holdings has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for China Pioneer Pharma Holdings’s debt level, has declined over the past 3 years from 21% to 13%.

What does this mean?

China Pioneer Pharma Holdings's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Recent positive growth doesn’t necessarily mean it’s onwards and upwards for the company. There could be variables that are influencing the entire industry hence the high industry growth rate over the same period of time. I suggest you continue to research China Pioneer Pharma Holdings to get a better picture of the stock by looking at:

  1. Financial Health: Are 1345’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.
  2. Valuation: What is 1345 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether 1345 is currently mispriced by the market.
  3. 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 31 December 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.