For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.
Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like China High Speed Transmission Equipment Group (HKG:658). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business.
See our latest analysis for China High Speed Transmission Equipment Group
How Fast Is China High Speed Transmission Equipment Group Growing Its Earnings Per Share?
Over the last three years, China High Speed Transmission Equipment Group has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn't particularly indicative of expected future performance. Thus, it makes sense to focus on more recent growth rates, instead. To the delight of shareholders, China High Speed Transmission Equipment Group's EPS soared from CN¥0.51 to CN¥0.80, over the last year. That's a commendable gain of 56%.
It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. EBIT margins for China High Speed Transmission Equipment Group remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 32% to CN¥20b. That's encouraging news for the company!
You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.
SEHK:658 Earnings and Revenue History August 11th 2022
While profitability drives the upside, prudent investors always check the balance sheet, too.
Are China High Speed Transmission Equipment Group Insiders Aligned With All Shareholders?
As a general rule, it's worth considering how much the CEO is paid, since unreasonably high rates could be considered against the interests of shareholders. For companies with market capitalisations between CN¥2.7b and CN¥11b, like China High Speed Transmission Equipment Group, the median CEO pay is around CN¥3.7m.
The China High Speed Transmission Equipment Group CEO received CN¥2.5m in compensation for the year ending December 2021. That is actually below the median for CEO's of similarly sized companies. CEO compensation is hardly the most important aspect of a company to consider, but when it's reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of a culture of integrity, in a broader sense.
Is China High Speed Transmission Equipment Group Worth Keeping An Eye On?
For growth investors, China High Speed Transmission Equipment Group's raw rate of earnings growth is a beacon in the night. With swiftly growing earnings, the best days may still be to come, and the modest CEO pay suggests the company is careful with cash. Based on these factors, this stock may well deserve a spot on your watchlist, or even a little further research. It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with China High Speed Transmission Equipment Group , and understanding this should be part of your investment process.
Although China High Speed Transmission Equipment Group certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see insider buying, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
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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.
對於初學者來説,收購一家向投資者講述一個好故事的公司似乎是一個好主意(也是一個令人興奮的前景),即使它目前沒有收入和利潤的記錄。不幸的是,這些高風險的投資往往不太可能獲得回報,許多投資者為此付出了代價。一家虧損的公司還沒有用盈利來證明自己,最終外部資本的流入可能會枯竭。
儘管處於科技股藍天投資的時代,許多投資者仍採取更傳統的策略;購買盈利的公司的股票,如中國高速傳輸設備集團(HKG:658)。現在,這並不是説該公司提供了最好的投資機會,但盈利能力是商業成功的關鍵組成部分。
查看我們對中國高速傳輸設備集團的最新分析
中國高速傳輸設備集團每股收益增長速度有多快?
在過去三年中,中國高速傳輸設備集團的每股收益(EPS)從相對較低的水平以同樣驚人的速度增長,導致三年的百分比增長率並不能特別預示未來的預期業績。因此,關注更近期的增長率是有意義的。令股東高興的是,中國高速傳輸設備集團的每股收益在過去一年裏從0.51元飆升至0.80元。這是值得稱讚的56%的收益。
看一看息税前利潤(EBIT)利潤率和收入增長,對了解公司增長的質量通常是有幫助的。中國高速傳輸設備集團的息税前利潤與去年持平,但該公司應該很高興地報告其收入增長32%至200億CN元。這對公司來説是個鼓舞人心的消息!
你可以在下面的圖表中看到該公司的收入和收益增長趨勢。要查看更詳細的信息,請點擊圖片。
聯交所:658盈利及收入歷史2022年8月11日
雖然盈利能力推動了上行,但謹慎的投資者總是會檢查資產負債表。
中國高速傳輸設備集團內部人員是否與所有股東一致?
一般來説,首席執行官的薪酬是值得考慮的,因為不合理的高薪酬可能會被認為是違背股東利益的。對於市值在27億加元至110億加元之間的公司,如中國高速傳輸設備集團,CEO薪酬中值約為370萬加元。
這位中國高速傳輸設備集團首席執行官在截至2021年12月的一年中獲得了250萬加元的薪酬。這實際上低於類似規模公司CEO的中位數。CEO薪酬很難説是一家公司最重要的考慮因素,但當薪酬合理時,這會讓人更有信心相信,領導層是在為股東利益着想。在更廣泛的意義上,它也可以是一種誠信文化的標誌。
中國高速傳輸設備集團值得關注嗎?
對於成長型投資者來説,中國高速傳輸設備集團的原始盈利增長率是夜間的燈塔。隨着收入的快速增長,最好的日子可能還在後面,而CEO的微薄薪酬表明,該公司對現金很謹慎。基於這些因素,這隻股票很可能值得在你的觀察名單上佔有一席之地,甚至值得進一步研究。仍然有必要考慮投資風險的幽靈無處不在。我們已經確定了1個警告信號與中國高速傳輸設備集團合作,瞭解這一點應該是您投資過程的一部分。
儘管中國高速傳輸設備集團看起來確實不錯,但如果內部人士買入股票,它可能會吸引更多的投資者。如果你想看到內幕交易,那麼這本書免費內部人士正在收購的成長型公司名單,可能正是你正在尋找的。
請注意,本文中討論的內幕交易指的是相關司法管轄區內的應報告交易。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。