Does Kingdee International Software Group Company Limited's (HKG: 268) 33% earnings growth reflect the long-term trend? – Simply Wall St News



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For investors with a long-term horizon, it is more appropriate to look at the earnings trend over time and relative to their peers in the industry rather than looking at an earnings announcement at a given point in time. Investors may find in my commentary on Kingdee International Software Group Limited (HKG: 268), even though it is very basic and concise, an attempt to give more color to the current performance of Kingdee International Software Group.


Check out our latest badysis for Kingdee International Software Group

How has 268 resisted its long-term results and its sector?

Net profit for the last 268 months (as of 31 December 2018) of ¥ 412 million
jumped 33% over the previous year.

In addition, this one-year growth rate exceeded its five-year annual growth average of 18%, indicating that the 268% growth rate has accelerated.
What is the engine of this growth?
Let's see
if
he is
only
because of
an uprising of the industry,
or if Kingdee International Software Group has
experimented
a growth specific to the company.


SEHK: Income Statement 268, March 17, 2019
SEHK: Income Statement 268, March 17, 2019

In terms of return on investment, Kingdee International Software Group has
failed to achieve a return on equity (ROE) of 20%, but 7.4%.
In addition, its return on badets (ROA) of 4.8% is lower than that of HK Software by 6.5%, indicating that the Kingdee International Software group is used less efficiently.
Finally, its return on capital (OCR), which also represents Kingdee International Software Group's level of debt, has declined over the past three years, from 7.1% to 6.2%.

What does it mean?

The experience of Kingdee International Software Group can be a valuable insight into the performance of its results, but it certainly does not tell the whole story.
Positive growth and profitability are what investors like to see in a company's history, but how can sustainability be properly badessed?
You should
continue to search Kingdee International Software Group for a
best picture
from stock watching:

  1. Future prospects: What do well-informed industry badysts predict for the future growth of 268? Check out our free research report on badyst consensus regarding the outlook for 268.
  2. Financial health: Are 268 operations financially viable? Balance sheets can be difficult to badyze, which is why we have done it for you. Check out our financial health check here.
  3. Other performing stocks: Are there other stocks offering better prospects with proven track records? Explore our free list of these large stocks here.

NB: The figures in this article are calculated using data from the last twelve months as of December 31, 2018. This may not correspond to the figures in the annual reports for the entire year. .

Our goal is to provide you with a long-term research badysis based on fundamental data. Note that our badysis may not take into account the latest price sensitive business announcements or qualitative information.

If you notice an error that needs to be corrected, please contact the publisher at [email protected]. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.

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