Why I Like Sa Sa International Holdings Limited (HKG:178)

Sa Sa International Holdings Limited (HKG:178) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of 178, it is a company with great financial health as well as a an impressive track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Sa Sa International Holdings here.

Flawless balance sheet with proven track record

Over the past year, 178 has grown its earnings by 1.5%, with its most recent figure exceeding its annual average over the past five years. Not only did 178 outperformed its past performance, its growth also exceeded the Specialty Retail industry expansion, which generated a 1.3% earnings growth. This is an notable feat for the company. 178 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that 178 has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. 178 currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

SEHK:178 Income Statement, September 15th 2019
SEHK:178 Income Statement, September 15th 2019

Next Steps:

For Sa Sa International Holdings, I've put together three relevant factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for 178’s future growth? Take a look at our free research report of analyst consensus for 178’s outlook.

  2. Valuation: What is 178 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 178 is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 178? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

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.

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. Thank you for reading.