Stock Analysis

The My Heart Bodibra Group (HKG:8297) Share Price Is Up 749% And Shareholders Are Delighted

SEHK:8297
Source: Shutterstock

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. When you find (and hold) a big winner, you can markedly improve your finances. For example, My Heart Bodibra Group Limited (HKG:8297) has generated a beautiful 749% return in just a single year. Also pleasing for shareholders was the 140% gain in the last three months. 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. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

It really delights us to see such great share price performance for investors.

Check out our latest analysis for My Heart Bodibra Group

Because My Heart Bodibra Group made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

My Heart Bodibra Group actually shrunk its revenue over the last year, with a reduction of 19%. So it's very confusing to see that the share price gained a whopping 749%. It's pretty clear the market isn't basing its valuation on fundamental metrics like revenue. While this gain looks like speculative buying to us, sometimes speculation pays off.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
SEHK:8297 Earnings and Revenue Growth February 19th 2021

If you are thinking of buying or selling My Heart Bodibra Group stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

My Heart Bodibra Group boasts a total shareholder return of 749% for the last year. The more recent returns haven't been as impressive as the longer term returns, coming in at just 140%. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). 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. To that end, you should learn about the 4 warning signs we've spotted with My Heart Bodibra Group (including 2 which are significant) .

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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