Even though Xinjiang Tianshan Animal Husbandry Bio-engineering (SZSE:300313) has lost CN¥651m market cap in last 7 days, shareholders are still up 30% over 1 year

The last three months have been tough on Xinjiang Tianshan Animal Husbandry Bio-engineering Co., Ltd. (SZSE:300313) shareholders, who have seen the share price decline a rather worrying 37%. But looking back over the last year, the returns have actually been rather pleasing! After all, the share price is up a market-beating 30% in that time.

While this past week has detracted from the company's one-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.

Check out our latest analysis for Xinjiang Tianshan Animal Husbandry Bio-engineering

Xinjiang Tianshan Animal Husbandry Bio-engineering isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually desire strong revenue growth. 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.

Xinjiang Tianshan Animal Husbandry Bio-engineering grew its revenue by 52% last year. That's a head and shoulders above most loss-making companies. The solid 30% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. If that's the case, now might be the time to take a close look at Xinjiang Tianshan Animal Husbandry Bio-engineering. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?

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 Xinjiang Tianshan Animal Husbandry Bio-engineering stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Xinjiang Tianshan Animal Husbandry Bio-engineering shareholders have received a total shareholder return of 30% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 0.6% per year), it would seem that the stock's performance has improved in recent times. 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Xinjiang Tianshan Animal Husbandry Bio-engineering you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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.