Can You Imagine How Jubilant China Shuifa Singyes Energy Holdings' (HKG:750) Shareholders Feel About Its 149% Share Price Gain?

Unless you borrow money to invest, the potential losses are limited. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the China Shuifa Singyes Energy Holdings Limited (HKG:750) share price had more than doubled in just one year - up 149%. It's up an even more impressive 192% over the last quarter. Zooming out, the stock is actually down 48% in the last three years.

Check out our latest analysis for China Shuifa Singyes Energy Holdings

Because China Shuifa Singyes Energy 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 expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

China Shuifa Singyes Energy Holdings grew its revenue by 62% last year. That's a head and shoulders above most loss-making companies. Meanwhile, the market has paid attention, sending the share price soaring 149% in response. It's great to see strong revenue growth, but the question is whether it can be sustained. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.

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

Take a more thorough look at China Shuifa Singyes Energy Holdings' financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that China Shuifa Singyes Energy Holdings shareholders have received a total shareholder return of 149% over one year. There's no doubt those recent returns are much better than the TSR loss of 9% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand China Shuifa Singyes Energy Holdings better, we need to consider many other factors. Even so, be aware that China Shuifa Singyes Energy Holdings is showing 3 warning signs in our investment analysis , and 2 of those are potentially serious...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

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This article by Simply Wall St is general in nature. 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.
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