Hao Tian International Construction Investment Group (HKG:1341) pulls back 6.7% this week, but still delivers shareholders stellar 278% return over 1 year

Some Hao Tian International Construction Investment Group Limited (HKG:1341) shareholders are probably rather concerned to see the share price fall 32% over the last three months. On the other hand, over the last twelve months the stock has delivered rather impressive returns. Indeed, the share price is up an impressive 278% in that time. So it may be that the share price is simply cooling off after a strong rise. Investors should be wondering whether the business itself has the fundamental value required to continue to drive gains.

Since the long term performance has been good but there's been a recent pullback of 6.7%, let's check if the fundamentals match 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. When a company doesn't make profits, we'd generally expect to see good 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.

Hao Tian International Construction Investment Group actually shrunk its revenue over the last year, with a reduction of 9.5%. We're a little surprised to see the share price pop 278% in the last year. 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 company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

If you are thinking of buying or selling Hao Tian International Construction Investment Group stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Hao Tian International Construction Investment Group shareholders have received a total shareholder return of 278% over one year. That gain is better than the annual TSR over five years, which is 18%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. For example, we've discovered 1 warning sign for Hao Tian International Construction Investment Group that you should be aware of before investing here.

We will like Hao Tian International Construction Investment Group better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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.