Stock Analysis

PanAsialum Holdings' (HKG:2078) Shareholders Are Down 15% On Their Shares

SEHK:2078
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This week we saw the PanAsialum Holdings Company Limited (HKG:2078) share price climb by 21%. But in truth the last year hasn't been good for the share price. The cold reality is that the stock has dropped 15% in one year, under-performing the market.

See our latest analysis for PanAsialum Holdings

PanAsialum Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

PanAsialum Holdings grew its revenue by 19% over the last year. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 15%. This implies the market was expecting better growth. But if revenue keeps growing, then at a certain point the share price would likely follow.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
SEHK:2078 Earnings and Revenue Growth January 7th 2021

If you are thinking of buying or selling PanAsialum Holdings stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While PanAsialum Holdings shareholders are down 15% for the year, the market itself is up 12%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. Putting aside the last twelve months, it's good to see the share price has rebounded by 6.3%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that PanAsialum Holdings is showing 3 warning signs in our investment analysis , and 2 of those are a bit concerning...

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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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