Investors ignore increasing losses at China National Complete Plant Import & Export (SZSE:000151) as stock jumps 12% this past week

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For example, the China National Complete Plant Import & Export Corporation Limited (SZSE:000151) share price has soared 114% in the last three years. Most would be happy with that. On top of that, the share price is up 78% in about a quarter. But this could be related to the strong market, which is up 33% in the last three months.

The past week has proven to be lucrative for China National Complete Plant Import & Export investors, so let's see if fundamentals drove the company's three-year performance.

View our latest analysis for China National Complete Plant Import & Export

China National Complete Plant Import & Export isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

China National Complete Plant Import & Export actually saw its revenue drop by 0.6% per year over three years. So we wouldn't have expected the share price to gain 29% per year, but it has. It's fair to say shareholders are definitely counting on a bright future.

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's nice to see that China National Complete Plant Import & Export shareholders have received a total shareholder return of 32% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 12% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with China National Complete Plant Import & Export , and understanding them should be part of your investment process.

We will like China National Complete Plant Import & Export 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.

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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.