Sun Create Electronics (SHSE:600990) surges 12% this week, taking one-year gains to 86%

It hasn't been the best quarter for Sun Create Electronics Co., Ltd (SHSE:600990) shareholders, since the share price has fallen 20% in that time. But that doesn't change the fact that the returns over the last year have been pleasing. After all, the share price is up a market-beating 86% in that time.

The past week has proven to be lucrative for Sun Create Electronics investors, so let's see if fundamentals drove the company's one-year performance.

View our latest analysis for Sun Create Electronics

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Over the last twelve months Sun Create Electronics went from profitable to unprofitable. While this may prove temporary, we'd consider it a negative, so we would not have expected to see the share price up. It may be that the company has done well on other metrics.

Unfortunately Sun Create Electronics' fell 17% over twelve months. So the fundamental metrics don't provide an obvious explanation for the share price gain.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

If you are thinking of buying or selling Sun Create Electronics stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Sun Create Electronics shareholders have received a total shareholder return of 86% over one year. Notably the five-year annualised TSR loss of 1.5% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Sun Create Electronics better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Sun Create Electronics , and understanding them should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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.