If You Had Bought Pak Wing Group (Holdings) (HKG:8316) Stock A Year Ago, You Could Pocket A 741% Gain Today

Active investing isn't easy, but for those that do it, the aim is to find the best companies to buy, and to profit handsomely. When you find (and hold) a big winner, you can markedly improve your finances. For example, Pak Wing Group (Holdings) Limited (HKG:8316) has generated a beautiful 741% return in just a single year. It's up an even more impressive 974% over the last 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. On the other hand, longer term shareholders have had a tougher run, with the stock falling 59% in three years.

Anyone who held for that rewarding ride would probably be keen to talk about it.

View our latest analysis for Pak Wing Group (Holdings)

Pak Wing Group (Holdings) isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong 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.

In the last year Pak Wing Group (Holdings) saw its revenue grow by 35%. We respect that sort of growth, no doubt. But the market is even more excited about it, with the price apparently bound for the moon, up 741% in one of earth's orbits. While we are always careful about jumping on a hot stock too late, there's certainly good reason to keep an eye on Pak Wing Group (Holdings).

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We're pleased to report that Pak Wing Group (Holdings) shareholders have received a total shareholder return of 741% over one year. That certainly beats the loss of about 14% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. 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. Take risks, for example - Pak Wing Group (Holdings) has 3 warning signs (and 1 which is a bit unpleasant) we think 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 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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