The Chanhigh Holdings Limited (HKG:2017) share price has fared very poorly over the last month, falling by a substantial 29%. Instead of being rewarded, shareholders who have already held through the last twelve months are now sitting on a 31% share price drop.
Since its price has dipped substantially, given close to half the companies in Hong Kong have price-to-earnings ratios (or "P/E's") above 9x, you may consider Chanhigh Holdings as an attractive investment with its 5.4x P/E ratio. However, the P/E might be low for a reason and it requires further investigation to determine if it's justified.
For example, consider that Chanhigh Holdings' financial performance has been poor lately as it's earnings have been in decline. It might be that many expect the disappointing earnings performance to continue or accelerate, which has repressed the P/E. However, if this doesn't eventuate then existing shareholders may be feeling optimistic about the future direction of the share price.
See our latest analysis for Chanhigh Holdings
SEHK:2017 Price Based on Past Earnings October 24th 2022 Want the full picture on earnings, revenue and cash flow for the company? Then our
free report on Chanhigh Holdings will help you shine a light on its historical performance.
What Are Growth Metrics Telling Us About The Low P/E?
There's an inherent assumption that a company should underperform the market for P/E ratios like Chanhigh Holdings' to be considered reasonable.
Taking a look back first, the company's earnings per share growth last year wasn't something to get excited about as it posted a disappointing decline of 18%. Regardless, EPS has managed to lift by a handy 23% in aggregate from three years ago, thanks to the earlier period of growth. Accordingly, while they would have preferred to keep the run going, shareholders would be roughly satisfied with the medium-term rates of earnings growth.
This is in contrast to the rest of the market, which is expected to grow by 19% over the next year, materially higher than the company's recent medium-term annualised growth rates.
With this information, we can see why Chanhigh Holdings is trading at a P/E lower than the market. It seems most investors are expecting to see the recent limited growth rates continue into the future and are only willing to pay a reduced amount for the stock.
The Final Word
Chanhigh Holdings' P/E has taken a tumble along with its share price. We'd say the price-to-earnings ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
We've established that Chanhigh Holdings maintains its low P/E on the weakness of its recent three-year growth being lower than the wider market forecast, as expected. At this stage investors feel the potential for an improvement in earnings isn't great enough to justify a higher P/E ratio. If recent medium-term earnings trends continue, it's hard to see the share price rising strongly in the near future under these circumstances.
And what about other risks? Every company has them, and we've spotted 3 warning signs for Chanhigh Holdings (of which 1 is significant!) you should know about.
If these risks are making you reconsider your opinion on Chanhigh Holdings, explore our interactive list of high quality stocks to get an idea of what else is out there.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
这个昌海控股有限公司(HKG:2017)过去一个月,股价表现非常糟糕,大幅下跌29%。在过去12个月里一直持有股票的股东非但没有获得回报,反而坐在股价下跌31%的位置上。
由于其股价大幅下跌,鉴于香港近一半的公司的市盈率(P/E)超过9倍,你可能会认为昌高控股5.4倍的市盈率是一项有吸引力的投资。然而,市盈率可能是有原因的,需要进一步调查才能确定它是否合理。
例如,考虑到ChanHigh Holdings最近的财务表现一直很差,因为它的收益一直在下降。许多人可能预计令人失望的盈利表现将继续或加速,这抑制了市盈率。然而,如果这不是最终的结果,那么现有股东可能对未来股价的走势感到乐观。
查看我们对ChanHigh Holdings的最新分析
联交所:2017年基于过去收益的价格2022年10月24日想要了解公司的收益、收入和现金流的全貌吗?那么我们的
免费Chanhi Holdings的报告将帮助您了解其历史表现。
增长指标告诉我们关于低市盈率的哪些信息?
有一种固有的假设,即一家公司的表现应该逊于市场,而像ChanHigh Holdings这样的市盈率才被认为是合理的。
先回过头来看,该公司去年的每股收益增长并不值得兴奋,因为它公布了令人失望的18%的降幅。无论如何,得益于早期的增长,每股收益比三年前总共提高了23%。因此,尽管股东们更愿意继续运营,但他们对中期盈利增长率大致感到满意。
这与其他市场形成对比,后者预计明年将增长19%,大大高于该公司最近的中期年化增长率。
有了这些信息,我们就可以理解为什么昌海控股的市盈率低于大盘。似乎大多数投资者都预计,最近有限的增长率将持续到未来,他们只愿意为该股支付较低的价格。
最后的结论
ChanHigh Holdings的市盈率与其股价一起暴跌。我们会说,市盈率的力量主要不是作为一种估值工具,而是衡量当前投资者的情绪和未来预期。
我们已经确定,ChanHigh Holdings维持其低市盈率的原因是,正如预期的那样,其最近三年的增长低于更广泛的市场预测。在这个阶段,投资者认为盈利改善的潜力还不够大,不足以证明提高市盈率是合理的。如果近期的中期盈利趋势继续下去,在这种情况下,很难看到股价在不久的将来强劲上涨。
还有其他风险呢?每家公司都有它们,我们已经发现ChanHigh Holdings的3个警告信号(其中1个是重要的!)你应该知道。
如果这些风险让你重新考虑对ChanHigh Holdings的看法,探索我们的高质量股票互动列表,以了解还有什么。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。