China Weaving Materials Holdings (HKG:3778) Shareholders Have Enjoyed A 23% Share Price Gain

There's no doubt that investing in the stock market is a truly brilliant way to build wealth. But if you choose that path, you're going to buy some stocks that fall short of the market. Unfortunately for shareholders, while the China Weaving Materials Holdings Limited (HKG:3778) share price is up 23% in the last year, that falls short of the market return. Unfortunately the longer term returns are not so good, with the stock falling 11% in the last three years.

Check out our latest analysis for China Weaving Materials Holdings

China Weaving Materials 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

China Weaving Materials Holdings actually shrunk its revenue over the last year, with a reduction of 18%. Given the revenue reduction the modest 23% share price rise over the year seems pretty decent. We'd want to see progress to profitability before getting too interested in this stock.

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

If you are thinking of buying or selling China Weaving Materials Holdings stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

China Weaving Materials Holdings provided a TSR of 23% over the last twelve months. But that return falls short of the market. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 3% endured over half a decade. It could well be that the business is stabilizing. 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 China Weaving Materials Holdings is showing 3 warning signs in our investment analysis , and 1 of those is potentially serious...

We will like China Weaving Materials Holdings better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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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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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