Wuhan Golden Laser (SZSE:300220) delivers shareholders notable 94% return over 1 year, surging 14% in the last week alone

Wuhan Golden Laser Co., Ltd (SZSE:300220) shareholders might be concerned after seeing the share price drop 13% in the last month. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. To wit, it had solidly beat the market, up 94%.

Since it's been a strong week for Wuhan Golden Laser shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for Wuhan Golden Laser

Wuhan Golden Laser 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.

Wuhan Golden Laser actually shrunk its revenue over the last year, with a reduction of 3.8%. The stock is up 94% in that time, a fine performance given the revenue drop. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Dive deeper into the earnings by checking this interactive graph of Wuhan Golden Laser's earnings, revenue and cash flow.

A Different Perspective

It's good to see that Wuhan Golden Laser has rewarded shareholders with a total shareholder return of 94% in the last twelve months. That certainly beats the loss of about 10% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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. For example, we've discovered 2 warning signs for Wuhan Golden Laser that you should be aware of before investing here.

Of course Wuhan Golden Laser may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.