Stock Analysis

China Ting Group Holdings (HKG:3398) Share Prices Have Dropped 11% In The Last Five Years

SEHK:3398
Source: Shutterstock

While not a mind-blowing move, it is good to see that the China Ting Group Holdings Limited (HKG:3398) share price has gained 20% in the last three months. But over the last half decade, the stock has not performed well. In fact, the share price is down 11%, which falls well short of the return you could get by buying an index fund.

Check out our latest analysis for China Ting Group Holdings

Given that China Ting Group Holdings didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over half a decade China Ting Group Holdings reduced its trailing twelve month revenue by 4.8% for each year. That's not what investors generally want to see. The stock hasn't done well for shareholders in the last five years, falling 2%, annualized. Unfortunately, though, it makes sense given the lack of either profits or revenue growth. Without profits, its hard to see how shareholders win if the revenue keeps falling.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
SEHK:3398 Earnings and Revenue Growth March 16th 2021

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

What about the Total Shareholder Return (TSR)?

We've already covered China Ting Group Holdings' share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Dividends have been really beneficial for China Ting Group Holdings shareholders, and that cash payout explains why its total shareholder loss of 0.8%, over the last 5 years, isn't as bad as the share price return.

A Different Perspective

China Ting Group Holdings shareholders are up 7.5% for the year. But that return falls short of the market. But at least that's still a gain! Over five years the TSR has been a reduction of 0.2% per year, over five years. So this might be a sign the business has turned its fortunes around. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for China Ting Group Holdings you should be aware of.

Of course China Ting Group Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.

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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. 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.
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