Announcing: Xinyi Electric Storage Holdings (HKG:8328) Stock Soared An Exciting 519% In The Last Year

While stock picking isn't easy, for those willing to persist and learn, it is possible to buy shares in great companies, and generate wonderful returns. While not every stock performs well, when investors win, they can win big. For example, the Xinyi Electric Storage Holdings Limited (HKG:8328) share price is up a whopping 519% in the last year, a handsome return in a single year. It's also good to see the share price up 37% over the last quarter. It is also impressive that the stock is up 233% over three years, adding to the sense that it is a real winner.

We love happy stories like this one. The company should be really proud of that performance!

Check out our latest analysis for Xinyi Electric Storage Holdings

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...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Over the last twelve months, Xinyi Electric Storage Holdings actually shrank its EPS by 9.0%.

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 21% could have some investors interested. We do see some companies suppress earnings in order to accelerate revenue growth.

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

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Dive deeper into the earnings by checking this interactive graph of Xinyi Electric Storage Holdings' earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Xinyi Electric Storage Holdings shareholders have received a total shareholder return of 519% over one year. That's better than the annualised return of 32% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Xinyi Electric Storage Holdings is showing 2 warning signs in our investment analysis , you should know about...

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

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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