Increasing losses over year doesn't faze Nanjing Central Emporium (Group) Stocks (SHSE:600280) investors as stock soars 10% this past week

Nanjing Central Emporium (Group) Stocks Co., Ltd. (SHSE:600280) shareholders should be happy to see the share price up 10% in the last week. But that isn't much consolation to those who have suffered through the declines of the last year. Specifically, the stock price slipped by 52% in that time. The share price recovery is not so impressive when you consider the fall. It may be that the fall was an overreaction.

The recent uptick of 10% could be a positive sign of things to come, so let's take a look at historical fundamentals.

View our latest analysis for Nanjing Central Emporium (Group) Stocks

Given that Nanjing Central Emporium (Group) Stocks 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. 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 just one year Nanjing Central Emporium (Group) Stocks saw its revenue fall by 0.1%. That's not what investors generally want to see. The share price drop of 52% is understandable given the company doesn't have profits to boast of. Fingers crossed this is the low ebb for the stock. We have a natural aversion to companies that are losing money and shrinking revenue. But perhaps that is being too careful.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

We regret to report that Nanjing Central Emporium (Group) Stocks shareholders are down 52% for the year. Unfortunately, that's worse than the broader market decline of 20%. 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. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 4% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Nanjing Central Emporium (Group) Stocks better, we need to consider many other factors. Take risks, for example - Nanjing Central Emporium (Group) Stocks has 1 warning sign we think you should be aware of.

If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying.

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