Recent 9.5% pullback isn't enough to hurt long-term BAIC BluePark New Energy TechnologyLtd (SHSE:600733) shareholders, they're still up 69% over 1 year

The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. For example, the BAIC BluePark New Energy Technology Co.,Ltd. (SHSE:600733) share price is up 69% in the last 1 year, clearly besting the market decline of around 17% (not including dividends). That's a solid performance by our standards! Zooming out, the stock is actually down 27% in the last three years.

In light of the stock dropping 9.5% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive one-year return.

View our latest analysis for BAIC BluePark New Energy TechnologyLtd

BAIC BluePark New Energy TechnologyLtd isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year BAIC BluePark New Energy TechnologyLtd saw its revenue grow by 30%. We respect that sort of growth, no doubt. Buyers pushed the share price 69% in response, which isn't unreasonable. If revenue stays on trend, there may be plenty more share price gains to come. But before deciding this growth stock is underappreciated, you might want to check out profitability trends (and cash flow)

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at BAIC BluePark New Energy TechnologyLtd's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that BAIC BluePark New Energy TechnologyLtd shareholders have received a total shareholder return of 69% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 3% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for BAIC BluePark New Energy TechnologyLtd (of which 1 can't be ignored!) you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Chinese exchanges.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com