Why Tradelink Electronic Commerce Limited (HKG:536) Could Have A Place In Your Portfolio

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Tradelink Electronic Commerce Limited (HKG:536) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of 536, it is a financially-sound , dividend-paying company with a a great track record of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Tradelink Electronic Commerce here.

Excellent balance sheet with solid track record and pays a dividend

In the previous year, 536 has ramped up its bottom line by 21%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 26% return to shareholders, which paints a buoyant picture for the company. 536 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:536 Income Statement, May 13th 2019
SEHK:536 Income Statement, May 13th 2019

Income investors would also be happy to know that 536 is one of the highest dividend payers in the market, with current dividend yield standing at 6.7%. 536 has also been regularly increasing its dividend payments to shareholders over the past decade.

SEHK:536 Historical Dividend Yield, May 13th 2019
SEHK:536 Historical Dividend Yield, May 13th 2019

Next Steps:

For Tradelink Electronic Commerce, there are three relevant factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for 536’s future growth? Take a look at our free research report of analyst consensus for 536’s outlook.

  2. Valuation: What is 536 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 536 is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 536? 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.

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