How Much Did Minshang Creative Technology Holdings'(HKG:1632) Shareholders Earn From Share Price Movements Over The Last Three Years?

Minshang Creative Technology Holdings Limited (HKG:1632) shareholders should be happy to see the share price up 24% in the last month. But the last three years have seen a terrible decline. In that time the share price has melted like a snowball in the desert, down 79%. So it sure is nice to see a bit of an improvement. Only time will tell if the company can sustain the turnaround.

See our latest analysis for Minshang Creative Technology Holdings

Given that Minshang Creative Technology 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last three years, Minshang Creative Technology Holdings saw its revenue grow by 76% per year, compound. That is faster than most pre-profit companies. So why has the share priced crashed 22% per year, in the same time? The share price makes us wonder if there is an issue with profitability. Sometimes fast revenue growth doesn't lead to profits. Unless the balance sheet is strong, the company might have to raise capital.

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

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Dive deeper into the earnings by checking this interactive graph of Minshang Creative Technology Holdings' earnings, revenue and cash flow.

A Different Perspective

Over the last year, Minshang Creative Technology Holdings shareholders took a loss of 5.1%. In contrast the market gained about 8.0%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. However, the loss over the last year isn't as bad as the 22% per annum loss investors have suffered over the last three years. We'd need clear signs of growth in the underlying business before we could muster much enthusiasm for this one. 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. Even so, be aware that Minshang Creative Technology Holdings is showing 2 warning signs in our investment analysis , and 1 of those is significant...

We will like Minshang Creative Technology 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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