Should D&G Technology Holding Company Limited’s (HKG:1301) Recent Earnings Worry You?

Assessing D&G Technology Holding Company Limited’s (HKG:1301) performance as a company requires looking at more than just a years’ earnings data. Below, I will run you through a simple sense check to build perspective on how D&G Technology Holding is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its machinery industry peers.

See our latest analysis for D&G Technology Holding

Did 1301 perform better than its track record and industry?

1301’s trailing twelve-month earnings (from 31 December 2017) of CN¥21.16m has
SEHK:1301 Income Statement Export August 15th 18
SEHK:1301 Income Statement Export August 15th 18
In terms of returns from investment, D&G Technology Holding has not invested its equity funds well, leading to a 2.86% return on equity (ROE), below the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 1.71% is below the HK Machinery industry of 3.93%, indicating D&G Technology Holding’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for D&G Technology Holding’s debt level, has declined over the past 3 years from 36.44% to 3.72%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. You should continue to research D&G Technology Holding to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for 1301’s future growth? Take a look at our free research report of analyst consensus for 1301’s outlook.
  2. Financial Health: Are 1301’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.
  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 2017. This may not be consistent with full year annual report figures.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.