Landrich Holding (HKG:2132) investors are up 10% in the past week, but earnings have declined over the last year

Unless you borrow money to invest, the potential losses are limited. But if you pick the right stock, you can make a lot more than 100%. For example, the Landrich Holding Limited (HKG:2132) share price had more than doubled in just one year - up 138%. On top of that, the share price is up 73% in about a quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. Landrich Holding hasn't been listed for long, so it's still not clear if it is a long term winner.

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

View our latest analysis for Landrich Holding

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Over the last twelve months, Landrich Holding actually shrank its EPS by 19%.

This means it's unlikely the market is judging the company based on earnings growth. Indeed, when EPS is declining but the share price is up, it often means the market is considering other factors.

Unfortunately Landrich Holding's fell 3.8% over twelve months. So the fundamental metrics don't provide an obvious explanation for the share price gain.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at Landrich Holding's financial health with this free report on its balance sheet.

A Different Perspective

Landrich Holding boasts a total shareholder return of 138% for the last year. And the share price momentum remains respectable, with a gain of 73% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand Landrich Holding better, we need to consider many other factors. For example, we've discovered 2 warning signs for Landrich Holding that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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.