HNAC Technology (SZSE:300490) adds CN¥674m to market cap in the past 7 days, though investors from three years ago are still down 46%

HNAC Technology Co., Ltd. (SZSE:300490) shareholders should be happy to see the share price up 28% in the last month. But that doesn't change the fact that the returns over the last three years have been less than pleasing. After all, the share price is down 46% in the last three years, significantly under-performing the market.

On a more encouraging note the company has added CN¥674m to its market cap in just the last 7 days, so let's see if we can determine what's driven the three-year loss for shareholders.

Check out our latest analysis for HNAC Technology

Given that HNAC Technology didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over three years, HNAC Technology grew revenue at 1.6% per year. That's not a very high growth rate considering it doesn't make profits. Indeed, the stock dropped 14% over the last three years. Shareholders will probably be hoping growth picks up soon. But the real upside for shareholders will be if the company can start generating profits.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

This free interactive report on HNAC Technology's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

HNAC Technology shareholders are up 19% for the year. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 1.5% endured over half a decade. So this might be a sign the business has turned its fortunes around. 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. Take risks, for example - HNAC Technology has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

Of course HNAC Technology 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.