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We Ran A Stock Scan For Earnings Growth And Super Hi International Holding (HKG:9658) Passed With Ease

収益成長およびスーパーハイインターナショナルホールディング(HKG:9658)についての株式スキャンを実行しました。簡単に合格しました。

Simply Wall St ·  2024/11/29 07:01

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Super Hi International Holding (HKG:9658). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.

How Fast Is Super Hi International Holding Growing Its Earnings Per Share?

Super Hi International Holding has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. As a result, we'll zoom in on growth over the last year, instead. In impressive fashion, Super Hi International Holding's EPS grew from US$0.039 to US$0.087, over the previous 12 months. It's not often a company can achieve year-on-year growth of 122%.

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. While we note Super Hi International Holding achieved similar EBIT margins to last year, revenue grew by a solid 16% to US$760m. That's progress.

The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.

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SEHK:9658 Earnings and Revenue History November 28th 2024

Fortunately, we've got access to analyst forecasts of Super Hi International Holding's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting.

Are Super Hi International Holding Insiders Aligned With All Shareholders?

It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. Super Hi International Holding followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. Given insiders own a significant chunk of shares, currently valued at US$514m, they have plenty of motivation to push the business to succeed. This would indicate that the goals of shareholders and management are one and the same.

Does Super Hi International Holding Deserve A Spot On Your Watchlist?

Super Hi International Holding's earnings per share growth have been climbing higher at an appreciable rate. That EPS growth certainly is attention grabbing, and the large insider ownership only serves to further stoke our interest. At times fast EPS growth is a sign the business has reached an inflection point, so there's a potential opportunity to be had here. Based on the sum of its parts, we definitely think its worth watching Super Hi International Holding very closely. However, before you get too excited we've discovered 1 warning sign for Super Hi International Holding that you should be aware of.

While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in HK with promising growth potential and insider confidence.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St 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. Simply Wall St has no position in any stocks mentioned.

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