If You Had Bought Xinyi Automobile Glass Hong Kong Enterprises (HKG:8328) Shares A Year Ago You'd Have Earned 174% Returns

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. Take, for example Xinyi Automobile Glass Hong Kong Enterprises Limited (HKG:8328). Its share price is already up an impressive 174% in the last twelve months. On top of that, the share price is up 71% in about a quarter. Looking back further, the stock price is 55% higher than it was three years ago.

View our latest analysis for Xinyi Automobile Glass Hong Kong Enterprises

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last year, Xinyi Automobile Glass Hong Kong Enterprises actually saw its earnings per share drop 37%.

So we don't think that investors are paying too much attention to EPS. Therefore, it seems likely that investors are putting more weight on metrics other than EPS, at the moment.

We think that the revenue growth of 26% could have some investors interested. We do see some companies suppress earnings in order to accelerate revenue growth.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at our free report on Xinyi Automobile Glass Hong Kong Enterprises' earnings, revenue and cash flow.

A Different Perspective

Pleasingly, Xinyi Automobile Glass Hong Kong Enterprises' total shareholder return last year was 174%. That's better than the annualized TSR of 17% over the last three years. The improving returns to shareholders suggests the stock is becoming more popular with time. 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 2 warning signs for Xinyi Automobile Glass Hong Kong Enterprises that you should be aware of.

Xinyi Automobile Glass Hong Kong Enterprises is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

If you decide to trade Xinyi Automobile Glass Hong Kong Enterprises, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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