Jiangsu Alcha Aluminium Group (SZSE:002160) adds CN¥320m to market cap in the past 7 days, though investors from three years ago are still down 28%

This week we saw the Jiangsu Alcha Aluminium Group Co., Ltd. (SZSE:002160) share price climb by 11%. Unfortunately the return over three years isn't so good. To be specific, the share price is a full 28% lower, while the market is down , with a return of (-27%)..

The recent uptick of 11% could be a positive sign of things to come, so let's take a look at historical fundamentals.

View our latest analysis for Jiangsu Alcha Aluminium Group

Given that Jiangsu Alcha Aluminium Group 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

In the last three years, Jiangsu Alcha Aluminium Group saw its revenue grow by 8.4% per year, compound. That's a pretty good rate of top-line growth. Shareholders have endured a share price decline of 9% per year. This implies the market had higher expectations of Jiangsu Alcha Aluminium Group. With revenue growing at a solid clip, now might be the time to focus on the possibility that it will have a brighter future.

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

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

A Different Perspective

We regret to report that Jiangsu Alcha Aluminium Group shareholders are down 25% for the year. Unfortunately, that's worse than the broader market decline of 17%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 2% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. You could get a better understanding of Jiangsu Alcha Aluminium Group's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com