Despite shrinking by CN¥368m in the past week, Anshan Senyuan Road and Bridge (SZSE:300210) shareholders are still up 246% over 1 year

When you buy shares in a company, there is always a risk that the price drops to zero. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Anshan Senyuan Road and Bridge Co., Ltd (SZSE:300210) share price has soared 246% return in just a single year. In more good news, the share price has risen 19% in thirty days. We note that Anshan Senyuan Road and Bridge reported its financial results recently; luckily, you can catch up on the latest revenue and profit numbers in our company report. Also impressive, the stock is up 186% over three years, making long term shareholders happy, too.

In light of the stock dropping 6.7% 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.

See our latest analysis for Anshan Senyuan Road and Bridge

Because Anshan Senyuan Road and Bridge made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

Anshan Senyuan Road and Bridge actually shrunk its revenue over the last year, with a reduction of 10%. We're a little surprised to see the share price pop 246% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

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

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of Anshan Senyuan Road and Bridge's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Anshan Senyuan Road and Bridge shareholders have received a total shareholder return of 246% over one year. That gain is better than the annual TSR over five years, which is 20%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Anshan Senyuan Road and Bridge better, we need to consider many other factors. For instance, we've identified 2 warning signs for Anshan Senyuan Road and Bridge that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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.