China Harzone Industry (SZSE:300527) ascends 5.7% this week, taking one-year gains to 22%

While China Harzone Industry Corp., Ltd (SZSE:300527) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 16% in the last quarter. But that doesn't change the fact that the returns over the last year have been respectable. After all, the stock has performed better than the market's return of (22%) over the last year, and is up 22%.

Since it's been a strong week for China Harzone Industry shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for China Harzone Industry

Given that China Harzone Industry only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

China Harzone Industry actually shrunk its revenue over the last year, with a reduction of 14%. Despite the lack of revenue growth, the stock has returned a solid 22% the last twelve months. 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).

Take a more thorough look at China Harzone Industry's financial health with this free report on its balance sheet.

A Different Perspective

China Harzone Industry's TSR for the year was broadly in line with the market average, at 22%. The silver lining is that the share price is up in the short term, which flies in the face of the annualised loss of 4% over the last five years. While 'turnarounds seldom turn' there are green shoots for China Harzone Industry. It's always interesting to track share price performance over the longer term. But to understand China Harzone Industry better, we need to consider many other factors. Take risks, for example - China Harzone Industry has 2 warning signs (and 1 which is significant) we think you should know about.

But note: China Harzone Industry may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.