Investors bid QITIAN Technology Group (SZSE:300061) up CN¥369m despite increasing losses YoY, taking one-year return to 15%

If you want to compound wealth in the stock market, you can do so by buying an index fund. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the QITIAN Technology Group Co., Ltd. (SZSE:300061) share price is 15% higher than it was a year ago, much better than the market decline of around 21% (not including dividends) in the same period. So that should have shareholders smiling. The longer term returns have not been as good, with the stock price only 7.4% higher than it was three years ago.

On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.

See our latest analysis for QITIAN Technology Group

QITIAN Technology Group isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally hope to see good 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.

In the last year QITIAN Technology Group saw its revenue shrink by 19%. Despite the lack of revenue growth, the stock has returned a solid 15% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

If you are thinking of buying or selling QITIAN Technology Group stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that QITIAN Technology Group shareholders have received a total shareholder return of 15% over one year. There's no doubt those recent returns are much better than the TSR loss of 0.7% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand QITIAN Technology Group better, we need to consider many other factors. Even so, be aware that QITIAN Technology Group is showing 1 warning sign in our investment analysis , you should know about...

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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.