OKG Technology Holdings (HKG:1499) shareholders are still up 224% over 1 year despite pulling back 11% in the past week

OKG Technology Holdings Limited (HKG:1499) shareholders have seen the share price descend 30% over the month. Despite this, the stock is a strong performer over the last year, no doubt about that. Like an eagle, the share price soared 224% in that time. So we think most shareholders won't be too upset about the recent fall. The real question is whether the business is trending in the right direction.

In light of the stock dropping 11% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive one-year return.

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Because OKG Technology Holdings 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 fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year OKG Technology Holdings saw its revenue grow by 26%. That's a fairly respectable growth rate. The revenue growth is decent but the share price had an even better year, gaining 224%. Given that the business has made good progress on the top line, it would be worth taking a look at its path to profitability. But investors need to be wary of how the 'fear of missing out' could influence them to buy without doing thorough research.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

This free interactive report on OKG Technology Holdings' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that OKG Technology Holdings shareholders have received a total shareholder return of 224% over the last year. That's better than the annualised return of 17% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. For instance, we've identified 1 warning sign for OKG Technology Holdings that you should be aware of.

But note: OKG Technology Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.