Huayuan PropertyLtd (SHSE:600743) shareholder returns have been favorable, earning 63% in 1 year

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the Huayuan Property Co.,Ltd. (SHSE:600743) share price is up 63% in the last 1 year, clearly besting the market return of around 11% (not including dividends). That's a solid performance by our standards! It is also impressive that the stock is up 34% over three years, adding to the sense that it is a real winner.

Since it's been a strong week for Huayuan PropertyLtd shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for Huayuan PropertyLtd

Huayuan PropertyLtd 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Huayuan PropertyLtd saw its revenue grow by 10%. That's not great considering the company is losing money. In keeping with the revenue growth, the share price gained 63% in that time. That's not a standout result, but it is solid - much like the level of revenue growth. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.

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

Take a more thorough look at Huayuan PropertyLtd's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Huayuan PropertyLtd shareholders have received a total shareholder return of 63% over one year. That gain is better than the annual TSR over five years, which is 4%. Therefore it seems like sentiment around the company has been positive lately. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Huayuan PropertyLtd (at least 2 which are a bit unpleasant) , and understanding them should be part of your investment process.

We will like Huayuan PropertyLtd better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Chinese exchanges.

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

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.