Shenzhen Sunwin Intelligent (SZSE:300044) shareholder returns have been splendid, earning 164% in 3 years

Shenzhen Sunwin Intelligent Co., Ltd. (SZSE:300044) shareholders might be concerned after seeing the share price drop 16% in the last quarter. In contrast, the return over three years has been impressive. The share price marched upwards over that time, and is now 164% higher than it was. So the recent fall in the share price should be viewed in that context. The thing to consider is whether the underlying business is doing well enough to support the current price.

Since the stock has added CN¥634m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

See our latest analysis for Shenzhen Sunwin Intelligent

Because Shenzhen Sunwin Intelligent made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Shenzhen Sunwin Intelligent actually saw its revenue drop by 39% per year over three years. So we wouldn't have expected the share price to gain 38% per year, but it has. It's fair to say shareholders are definitely counting on a bright 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).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We're pleased to report that Shenzhen Sunwin Intelligent shareholders have received a total shareholder return of 87% over one year. That certainly beats the loss of about 1.9% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Shenzhen Sunwin Intelligent better, we need to consider many other factors. For example, we've discovered 1 warning sign for Shenzhen Sunwin Intelligent that you should be aware of before investing here.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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.