Beijing Energy International Holding (HKG: 686) loses CN 449 million, company profits and investor returns tend to decline in past five years

We believe that long-term smart investing is the way to go. But no one is immune to a purchase that is too high. For example the Beijing Energy International Holding Co., Ltd. (HKG: 686) The stock price has fallen 59% in five years. It’s extremely sub-optimal, to say the least. More recently, the share price fell a further 8.2% in one month.

Since the past week has been a tough one for shareholders, let’s take a look at the fundamentals and see what we can learn.

Check out our latest analysis for Beijing Energy International Holding

To quote Buffett, “Ships will sail around the world but the Flat Earth Society will thrive. There will continue to be wide spreads between price and value in the market … ‘An imperfect but straightforward way to examine how a company’s market perception has changed is to compare the evolution of earnings per share (BPA) with the price movement action.

Beijing Energy International Holding has become profitable in the past five years. This would generally be viewed as positive, so we’re surprised to see that the stock price is going down. Other measures can better explain the evolution of the share price.

Unlike the share price, revenue actually grew 16% per year over the five-year period. It therefore seems that one needs to take a closer look at the fundamentals to understand why the stock price is languishing. After all, there may be an opportunity.

Below you can see how earnings and income have evolved over time (find out the exact values ​​by clicking on the image).

SEHK: 686 Revenue and Revenue Growth November 1, 2021

Take a closer look at the financial health of Beijing Energy International Holding with this free report on its balance sheet.

A different perspective

It is nice to see that the shareholders of Beijing Energy International Holding have received a total shareholder return of 35% over the past year. In particular, the loss of the annualized five-year TSR of 10% per year compares very unfavorably with the recent evolution of the share price. It makes us a little suspicious, but the company may have changed course. I find it very interesting to look at the long-term share price as an indicator of company performance. But to really get an overview, we have to take other information into account as well. For example, we discovered 2 warning signs for Beijing Energy International Holding (1 is a little worrying!) That you should know before investing here.

If you would rather consult with another company – one with potentially superior finances – then don’t miss this free list of companies that have proven they can increase their profits.

Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently trading on the Hong Kong stock exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

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