Despite shrinking by CN¥669m in the past week, Beijing Airport High-Tech Park (SHSE:600463) shareholders are still up 136% over 3 years

It's been a soft week for Beijing Airport High-Tech Park Co., Ltd. (SHSE:600463) shares, which are down 14%. But that doesn't change the fact that the returns over the last three years have been very strong. The share price marched upwards over that time, and is now 136% higher than it was. After a run like that some may not be surprised to see prices moderate. Only time will tell if there is still too much optimism currently reflected in the share price.

Although Beijing Airport High-Tech Park has shed CN¥669m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

See our latest analysis for Beijing Airport High-Tech Park

Beijing Airport High-Tech Park 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 3 years Beijing Airport High-Tech Park saw its revenue shrink by 40% per year. So we wouldn't have expected the share price to gain 33% per year, but it has. It's fair to say shareholders are definitely counting on a bright future.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

This free interactive report on Beijing Airport High-Tech Park's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Beijing Airport High-Tech Park shareholders have received a total shareholder return of 48% over the last year. That gain is better than the annual TSR over five years, which is 13%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Beijing Airport High-Tech Park better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Beijing Airport High-Tech Park (including 2 which don't sit too well with us) .

We will like Beijing Airport High-Tech Park better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

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

Have 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.