Investors bid Joyware ElectronicsLtd (SZSE:300270) up CN¥226m despite increasing losses YoY, taking one-year return to 100%

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Joyware Electronics Co.,Ltd (SZSE:300270) share price had more than doubled in just one year - up 100%. And in the last month, the share price has gained 13%. However, the stock hasn't done so well in the longer term, with the stock only up 25% in three years.

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

See our latest analysis for Joyware ElectronicsLtd

Given that Joyware ElectronicsLtd 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. When a company doesn't make profits, we'd generally hope to see good 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.

Joyware ElectronicsLtd actually shrunk its revenue over the last year, with a reduction of 61%. So we would not have expected the share price to rise 100%. It just goes to show the market doesn't always pay attention to the reported numbers. It's quite likely the revenue fall was already priced in, anyway.

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

It's nice to see that Joyware ElectronicsLtd shareholders have received a total shareholder return of 100% over the last year. That certainly beats the loss of about 0.2% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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. To that end, you should be aware of the 1 warning sign we've spotted with Joyware ElectronicsLtd .

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.