Further weakness as Hunan Lead Power Technology Group (SZSE:300530) drops 15% this week, taking three-year losses to 44%

It is doubtless a positive to see that the Hunan Lead Power Technology Group Co., Ltd. (SZSE:300530) share price has gained some 34% in the last three months. But that doesn't help the fact that the three year return is less impressive. In fact, the share price is down 44% in the last three years, falling well short of the market return.

Since Hunan Lead Power Technology Group has shed CN¥621m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

See our latest analysis for Hunan Lead Power Technology Group

Hunan Lead Power Technology Group wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually desire strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last three years Hunan Lead Power Technology Group saw its revenue shrink by 1.2% per year. That's not what investors generally want to see. The annual decline of 13% per year in that period has clearly disappointed holders. That makes sense given the lack of either profits or revenue growth. However, in this kind of situation you can sometimes find opportunity, where sentiment is negative but the company is actually making good progress.

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 Hunan Lead Power Technology Group's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that Hunan Lead Power Technology Group has rewarded shareholders with a total shareholder return of 17% in the last twelve months. That's better than the annualised return of 1.7% 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. 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 - Hunan Lead Power Technology Group has 2 warning signs we think you should be aware of.

Of course Hunan Lead Power Technology Group 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.