Hainan Haiqi Transportation GroupLtd (SHSE:603069) rises 7.0% this week, taking five-year gains to 144%

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. One great example is Hainan Haiqi Transportation Group Co.,Ltd. (SHSE:603069) which saw its share price drive 143% higher over five years. On top of that, the share price is up 38% in about a quarter. But this move may well have been assisted by the reasonably buoyant market (up 34% in 90 days).

The past week has proven to be lucrative for Hainan Haiqi Transportation GroupLtd investors, so let's see if fundamentals drove the company's five-year performance.

Check out our latest analysis for Hainan Haiqi Transportation GroupLtd

Given that Hainan Haiqi Transportation GroupLtd 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 5 years Hainan Haiqi Transportation GroupLtd saw its revenue shrink by 0.2% per year. Given that scenario, we wouldn't have expected the share price to rise 19% per year, but that's what it did. It's a good reminder that expectations about the future, not the past history, always impact share prices. Still, we are a bit cautious in this kind of situation.

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 Hainan Haiqi Transportation GroupLtd stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Hainan Haiqi Transportation GroupLtd provided a TSR of 13% over the year. That's fairly close to the broader market return. It has to be noted that the recent return falls short of the 20% shareholders have gained each year, over half a decade. More recently, the share price growth has slowed. But it has to be said the overall picture is one of good long term and short term performance. Arguably that makes Hainan Haiqi Transportation GroupLtd a stock worth watching. 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. Case in point: We've spotted 1 warning sign for Hainan Haiqi Transportation GroupLtd you should be aware of.

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

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.