Dafeng Port Heshun Technology (HKG:8310) pops 12% this week, taking one-year gains to 107%

Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Dafeng Port Heshun Technology Company Limited (HKG:8310) share price has soared 107% return in just a single year. Better yet, the share price has risen 12% in the last week. Also impressive, the stock is up 74% over three years, making long term shareholders happy, too.

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

Check out our latest analysis for Dafeng Port Heshun Technology

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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).

During the last year Dafeng Port Heshun Technology grew its earnings per share, moving from a loss to a profit.

We think the growth looks very prospective, so we're not surprised the market liked it too. Generally speaking the profitability inflection point is a great time to research a company closely, lest you miss an opportunity to profit.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

This free interactive report on Dafeng Port Heshun Technology's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that Dafeng Port Heshun Technology has rewarded shareholders with a total shareholder return of 107% in the last twelve months. That gain is better than the annual TSR over five years, which is 15%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Dafeng Port Heshun Technology better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Dafeng Port Heshun Technology (of which 3 are a bit concerning!) you should know about.

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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com