Date:Apr 27, 2018
Assessing China Vanadium Titano-Magnetite Mining Company Limited’s (SEHK:893) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess 893’s recent performance announced on 31 December 2017 and evaluate these figures to its longer term trend and industry movements.
Were 893’s earnings stronger than its past performances and the industry?
For the purpose of this commentary, I like to use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This blend allows me to examine many different companies on a more comparable basis, using the latest information. For China Vanadium Titano-Magnetite Mining, its most recent earnings (trailing twelve month) is -CN¥349.49M, which compared to last year’s figure, has become less negative. Given that these values may be fairly myopic, I’ve created an annualized five-year value for China Vanadium Titano-Magnetite Mining’s net income, which stands at -CN¥168.29M. This suggests that, China Vanadium Titano-Magnetite Mining has historically performed better than recently, although it seems like earnings are now heading back towards a more favorable position once more.
