The past five years for Metallurgical Corporation of China (HKG:1618) investors has not been profitable

Simply Wall St.01-10

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But even in a market-beating portfolio, some stocks will lag the market. While the ...

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While the ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/capital-goods/hkg-1618/metallurgical-corporation-of-china-shares/news/the-past-five-years-for-metallurgical-corporation-of-china-h\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The past five years for Metallurgical Corporation of China (HKG:1618) investors has not been profitable</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe past five years for Metallurgical Corporation of China (HKG:1618) investors has not been profitable\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-01-10 15:18 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/capital-goods/hkg-1618/metallurgical-corporation-of-china-shares/news/the-past-five-years-for-metallurgical-corporation-of-china-h><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>These days it's easy to simply buy an index fund, and your returns should (roughly) match the market.  But even in a market-beating portfolio, some stocks will lag the market.   While the ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/capital-goods/hkg-1618/metallurgical-corporation-of-china-shares/news/the-past-five-years-for-metallurgical-corporation-of-china-h\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK1148","symbol_name":"建筑与工程","start_time":0,"source_url":"https://simplywall.st/stocks/hk/capital-goods/hkg-1618/metallurgical-corporation-of-china-shares/news/the-past-five-years-for-metallurgical-corporation-of-china-h","article_id":"2402125663","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3041000-choice2-main-header/1585186777117"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2402125663","pubTimestamp":1704871088,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But even in a...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK1148":"建筑与工程","BK1565":"高铁基建股","01618":"中国中冶"},"translate_title":"在过去的五年里，中国冶金科工（HKG：1618）的投资者并没有盈利","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"01618":1},"content_text":"These days it's easy to simply buy an index fund, and your returns should (roughly) match the market.  But even in a market-beating portfolio, some stocks will lag the market.   While the Metallurgical Corporation of China Ltd. (HKG:1618) share price is down 23% over half a decade, the total return to shareholders (which includes dividends) was -2.7%.  That's better than the market which declined 4.1% over the same time.       Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns.    View our latest analysis for Metallurgical Corporation of China   To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...'  One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.   During the unfortunate half decade during which the share price slipped, Metallurgical Corporation of China actually saw its earnings per share (EPS) improve by 13% per year.  So it doesn't seem like EPS is a great guide to understanding how the market is valuing the stock.  Alternatively, growth expectations may have been unreasonable in the past.   Due to the lack of correlation between the EPS growth and the falling share price, it's worth taking a look at other metrics to try to understand the share price movement.  The steady dividend doesn't really explain why the share price is down.   It's not immediately clear to us why the stock price is down but further research might provide some answers.       You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). SEHK:1618 Earnings and Revenue Growth January 10th 2024 Metallurgical Corporation of China is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth.  So it makes a lot of sense to check out what analysts think Metallurgical Corporation of China will earn in the future (free analyst consensus estimates)  What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR).  Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off.  It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend.  As it happens, Metallurgical Corporation of China's TSR for the last 5 years was -2.7%, which exceeds the share price return mentioned earlier.  This is largely a result of its dividend payments!  A Different Perspective While it's never nice to take a loss, Metallurgical Corporation of China shareholders can take comfort that , including dividends,their trailing twelve month loss of 12% wasn't as bad as the market loss of around 15%.    Given the total loss of 0.5% per year over five years, it seems returns have deteriorated in the last twelve months.  While some investors do well specializing in buying companies that are struggling (but nonetheless undervalued), don't forget that Buffett said that 'turnarounds seldom turn'.        It's always interesting to track share price performance over the longer term. But to understand Metallurgical Corporation of China better, we need to consider many other factors.   For example, we've discovered 1 warning sign for Metallurgical Corporation of China that you should be aware of before investing here.    Of course Metallurgical Corporation of China may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong exchanges.Valuation is complex, but we're helping make it simple.Find out whether Metallurgical Corporation of China is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave 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.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.5","shortVersion":"4.22.5","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2402125663"}