Can Mixed Fundamentals Have A Negative Impact on Chong Fai Jewellery Group Holdings Company Limited (HKG:8537) Current Share Price Momentum?

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Can Mixed Fundamentals Have A Negative Impact on Chong Fai Jewellery Group Holdings Company Limited (HKG:8537) Current Share Price Momentum?

Simply Wall St.10-17

Most readers would already be aware that Chong Fai Jewellery Group Holdings' (HKG:8537) stock increased significantly by 43% over the past month. However, we wonder if the company's inconsistent ...

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However, we wonder if the company's inconsistent ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/consumer-durables/hkg-8537/chong-fai-jewellery-group-holdings-shares/news/can-mixed-fundamentals-have-a-negative-impact-on-chong-fai-j\">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>Can Mixed Fundamentals Have A Negative Impact on Chong Fai Jewellery Group Holdings Company Limited (HKG:8537) Current Share Price Momentum?</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\">\nCan Mixed Fundamentals Have A Negative Impact on Chong Fai Jewellery Group Holdings Company Limited (HKG:8537) Current Share Price Momentum?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-17 06:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/consumer-durables/hkg-8537/chong-fai-jewellery-group-holdings-shares/news/can-mixed-fundamentals-have-a-negative-impact-on-chong-fai-j><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Most readers would already be aware that Chong Fai Jewellery Group Holdings' (HKG:8537) stock increased significantly by 43% over the past month.   However, we wonder if the company's inconsistent ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/consumer-durables/hkg-8537/chong-fai-jewellery-group-holdings-shares/news/can-mixed-fundamentals-have-a-negative-impact-on-chong-fai-j\">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":"08537","symbol_name":"创辉珠宝","start_time":0,"source_url":"https://simplywall.st/stocks/hk/consumer-durables/hkg-8537/chong-fai-jewellery-group-holdings-shares/news/can-mixed-fundamentals-have-a-negative-impact-on-chong-fai-j","article_id":"2476490729","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4131000-choice1-main-header/1585186707756"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2476490729","pubTimestamp":1729117525,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Most readers would already be aware that Chong Fai Jewellery Group Holdings' (HKG:8537) stock increased significantly...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"08537":"创辉珠宝","BK1227":"服装、服饰与奢侈品"},"translate_title":"好坏参半的基本面是否会对创辉珠宝集团控股有限公司（HKG：8537）目前的股价势头产生负面影响？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"08537":1},"content_text":"Most readers would already be aware that Chong Fai Jewellery Group Holdings' (HKG:8537) stock increased significantly by 43% over the past month.   However, we wonder if the company's inconsistent financials would have any adverse impact on the current share price momentum.      In this article, we decided to focus on Chong Fai Jewellery Group Holdings'  ROE.    ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders.  Put another way, it reveals the company's success at turning shareholder investments into profits.  Check out our latest analysis for Chong Fai Jewellery Group Holdings  How Is ROE Calculated?  The formula for return on equity is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Chong Fai Jewellery Group Holdings is:2.2% = HK$1.6m ÷ HK$71m (Based on the trailing twelve months to March 2024). The 'return' is the amount earned after tax over the last twelve months.  One way to conceptualize this is that for each HK$1 of shareholders' capital it has, the company made HK$0.02 in profit.   What Is The Relationship Between ROE And Earnings Growth?  Thus far, we have learned that ROE measures how efficiently a company is generating its profits.  Based on how much of its profits the company chooses to reinvest or \"retain\", we are then able to evaluate a company's future ability to generate profits.  Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.  A Side By Side comparison of Chong Fai Jewellery Group Holdings' Earnings Growth And 2.2% ROE  As you can see, Chong Fai Jewellery Group Holdings' ROE looks pretty weak.   Even compared to the average industry ROE of 11%, the company's ROE is quite dismal.   Therefore, it might not be wrong to say that the five year net income decline of 19% seen by Chong Fai Jewellery Group Holdings was possibly a result of it having a lower ROE.  We believe that there also might be other aspects that are negatively influencing the company's earnings prospects.  Such as - low earnings retention or poor allocation of capital.     So, as a next step, we compared Chong Fai Jewellery Group Holdings' performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 13% over the last few years.   SEHK:8537 Past Earnings Growth October 16th 2024 Earnings growth is an important metric to consider when valuing a stock.   The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in.   This then helps them determine if the stock is placed for a bright or bleak future.    Is Chong Fai Jewellery Group Holdings fairly valued compared to other companies? These 3 valuation measures might help you decide.    Is Chong Fai Jewellery Group Holdings Using Its Retained Earnings Effectively?    Chong Fai Jewellery Group Holdings doesn't pay any regular dividends, meaning that the company is keeping all of its profits, which makes us wonder why it is retaining its earnings if it can't use them to grow its business.  It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.     Summary    Overall, we have mixed feelings about Chong Fai Jewellery Group Holdings.      While the company does have a high rate of reinvestment, the low ROE means that all that reinvestment is not reaping any benefit to its investors, and moreover, its having a negative impact on the earnings growth.       Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business.   You can see the 4 risks we have identified for Chong Fai Jewellery Group Holdings by visiting our risks dashboard for free  on our platform here. New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave 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":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"hasMoreComments":false,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}