Want To Invest In Shaanxi Northwest New Technology Industry Company Limited (HKG:8258)? Here's How It Performed Lately

Measuring Shaanxi Northwest New Technology Industry Company Limited's (HKG:8258) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess 8258's recent performance announced on 30 June 2018 and compare these figures to its historical trend and industry movements.

See our latest analysis for Shaanxi Northwest New Technology Industry

How Well Did 8258 Perform?

8258 recently turned a profit of CN¥7.8m (most recent trailing twelve-months) compared to its average loss of -CN¥2.5m over the past five years.

In the last few years, Shaanxi Northwest New Technology Industry expanded bottom-line, while its top-line fell, by effectively managing its costs. This brought about to a margin expansion and profitability over time. Eyeballing growth from a sector-level, the HK chemicals industry has been growing its average earnings by double-digit 23.8% over the previous twelve months, and a less exciting 2.2% over the last five years. This growth is a median of profitable companies of 25 Chemicals companies in HK including Manfield Chemical Holdings, CPM Group and CNT Group. This means whatever uplift the industry is deriving benefit from, Shaanxi Northwest New Technology Industry is able to amplify this to its advantage.

In terms of returns from investment, Shaanxi Northwest New Technology Industry has fallen short of achieving a 20% return on equity (ROE), recording 5.2% instead. Furthermore, its return on assets (ROA) of 4.8% is below the HK Chemicals industry of 5.9%, indicating Shaanxi Northwest New Technology Industry's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Shaanxi Northwest New Technology Industry’s debt level, has increased over the past 3 years from 5.3% to 5.9%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. While Shaanxi Northwest New Technology Industry has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Shaanxi Northwest New Technology Industry to get a more holistic view of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for 8258’s future growth? Take a look at our free research report of analyst consensus for 8258’s outlook.
2. Financial Health: Are 8258’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 30 June 2018. 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.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.