Investors ignore increasing losses at Hi-Target Navigation TechLtd (SZSE:300177) as stock jumps 15% this past week

It hasn't been the best quarter for Hi-Target Navigation Tech Co.,Ltd (SZSE:300177) shareholders, since the share price has fallen 15% in that time. But that doesn't detract from the splendid returns of the last year. During that period, the share price soared a full 183%. So we think most shareholders won't be too upset about the recent fall. More important, going forward, is how the business itself is going.

Since the stock has added CN¥1.1b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

View our latest analysis for Hi-Target Navigation TechLtd

Hi-Target Navigation TechLtd 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.

In the last year Hi-Target Navigation TechLtd saw its revenue shrink by 23%. We're a little surprised to see the share price pop 183% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

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

Take a more thorough look at Hi-Target Navigation TechLtd's financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Hi-Target Navigation TechLtd has rewarded shareholders with a total shareholder return of 183% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 1.1% 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. Take risks, for example - Hi-Target Navigation TechLtd has 2 warning signs we think you should be aware of.

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.

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.