Further weakness as Hao Tian International Construction Investment Group (HKG:1341) drops 11% this week, taking one-year losses to 48%

The simplest way to benefit from a rising market is to buy an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Unfortunately the Hao Tian International Construction Investment Group Limited (HKG:1341) share price slid 48% over twelve months. That contrasts poorly with the market decline of 3.8%. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 13% in three years. Unfortunately the last month hasn't been any better, with the share price down 55%.

If the past week is anything to go by, investor sentiment for Hao Tian International Construction Investment Group isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

See our latest analysis for Hao Tian International Construction Investment Group

Because Hao Tian International Construction Investment Group 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. Shareholders of unprofitable companies usually desire strong revenue growth. 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.

In just one year Hao Tian International Construction Investment Group saw its revenue fall by 30%. That looks pretty grim, at a glance. Shareholders have seen the share price drop 48% in that time. That seems pretty reasonable given the lack of both profits and revenue growth. It's hard to escape the conclusion that buyers must envision either growth down the track, cost cutting, or both.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

Investors in Hao Tian International Construction Investment Group had a tough year, with a total loss of 48%, against a market gain of about 3.8%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 7% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Hao Tian International Construction Investment Group better, we need to consider many other factors. For instance, we've identified 3 warning signs for Hao Tian International Construction Investment Group that you should be aware of.

Of course Hao Tian International Construction Investment Group may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong 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.