Carry Wealth Holdings (HKG:643) shareholder returns have been strong, earning 220% in 1 year

Published
June 24, 2022
SEHK:643
Source: Shutterstock

When you buy shares in a company, there is always a risk that the price drops to zero. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Carry Wealth Holdings Limited (HKG:643) share price has soared 220% in the last 1 year. Most would be very happy with that, especially in just one year! Also pleasing for shareholders was the 145% gain in the last three months. However, the longer term returns haven't been so impressive, with the stock up just 29% in the last three years.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

Check out our latest analysis for Carry Wealth Holdings

Given that Carry Wealth 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Carry Wealth Holdings saw its revenue grow by 52%. That's well above most other pre-profit companies. And the share price has responded, gaining 220% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
SEHK:643 Earnings and Revenue Growth June 24th 2022

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.

A Different Perspective

We're pleased to report that Carry Wealth Holdings shareholders have received a total shareholder return of 220% over one year. There's no doubt those recent returns are much better than the TSR loss of 3% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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. For example, we've discovered 2 warning signs for Carry Wealth Holdings that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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About SEHK:643

Carry Wealth Holdings

Carry Wealth Holdings Limited, an investment holding company, manufactures and trades in garment products for various brands in the United States, Mainland China, Europe, Hong Kong, and internationally.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation2
Future Growth0
Past Performance0
Financial Health5
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Excellent balance sheet and slightly overvalued.

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