A Look At Colour Life Services Group Co., Limited's (HKG:1778) Exceptional Fundamentals

January 20, 2019
  •  Updated
August 10, 2022
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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Colour Life Services Group Co., Limited (HKG:1778) due to its excellent fundamentals in more than one area. 1778 has a a great history of performance as well as a buoyant growth outlook going forward. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on Colour Life Services Group here.

Proven track record with reasonable growth potential

1778’s outstanding revenue growth of 70% forecasted for the near future is certainly eye-catching for investors on the hunt for growth. This underlies the notable 22% return on equity over the next few years leading up to 2022. 1778 delivered a bottom-line expansion of 84% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did 1778 outperformed its past performance, its growth also surpassed the Real Estate industry expansion, which generated a 49% earnings growth. This is an optimistic signal for the future.

SEHK:1778 Future Profit January 21st 19
SEHK:1778 Future Profit January 21st 19

Next Steps:

For Colour Life Services Group, there are three fundamental factors you should further research:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is 1778 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether 1778 is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1778? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

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.

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