Qingdao Kingking Applied Chemistry (SZSE:002094) shareholder returns have been splendid, earning 103% in 1 year

Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. Take, for example Qingdao Kingking Applied Chemistry Co., Ltd. (SZSE:002094). Its share price is already up an impressive 103% in the last twelve months. Better yet, the share price has gained 279% in the last quarter. And shareholders have also done well over the long term, with an increase of 96% in the last three years.

Since it's been a strong week for Qingdao Kingking Applied Chemistry shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for Qingdao Kingking Applied Chemistry

While Qingdao Kingking Applied Chemistry made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last year Qingdao Kingking Applied Chemistry saw its revenue shrink by 36%. So we would not have expected the share price to rise 103%. 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.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. It might be well worthwhile taking a look at our free report on Qingdao Kingking Applied Chemistry's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Qingdao Kingking Applied Chemistry shareholders have received a total shareholder return of 103% over one year. That's better than the annualised return of 9% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 2 warning signs we've spotted with Qingdao Kingking Applied Chemistry .

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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.