While China Shun Ke Long Holdings (HKG:974) shareholders have made 143% in 3 years, increasing losses might now be front of mind as stock sheds 11% this week

The China Shun Ke Long Holdings Limited (HKG:974) share price has had a bad week, falling 11%. In contrast, the return over three years has been impressive. In three years the stock price has launched 143% higher: a great result. It's not uncommon to see a share price retrace a bit, after a big gain. If the business can perform well for years to come, then the recent drop could be an opportunity.

Although China Shun Ke Long Holdings has shed HK$64m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

View our latest analysis for China Shun Ke Long Holdings

Given that China Shun Ke Long Holdings didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 3 years China Shun Ke Long Holdings saw its revenue shrink by 15% per year. So the share price gain of 34% per year is quite surprising. It's fair to say shareholders are definitely counting on a bright future.

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

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 China Shun Ke Long Holdings shareholders have received a total shareholder return of 122% over one year. That's better than the annualised return of 2% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for China Shun Ke Long Holdings (of which 2 shouldn't be ignored!) you should know about.

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 Hong Kong exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.