If You Had Bought Feiyang International Holdings Group's (HKG:1901) Shares A Year Ago You Would Be Down 31%

This week we saw the Feiyang International Holdings Group Limited (HKG:1901) share price climb by 13%. But that is minimal compensation for the share price under-performance over the last year. After all, the share price is down 31% in the last year, significantly under-performing the market.

Check out our latest analysis for Feiyang International Holdings Group

Because Feiyang International Holdings 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Feiyang International Holdings Group's revenue didn't grow at all in the last year. In fact, it fell 12%. That's not what investors generally want to see. Shareholders have seen the share price drop 31% in that time. That seems pretty reasonable given the lack of both profits and revenue growth. We think most holders must believe revenue growth will improve, or else costs will decline.

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

We consider it positive that insiders have made significant purchases in the last year. 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 Feiyang International Holdings Group's earnings, revenue and cash flow.

A Different Perspective

Given that the market gained 5.6% in the last year, Feiyang International Holdings Group shareholders might be miffed that they lost 31%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. With the stock down 12% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Feiyang International Holdings Group (at least 2 which are a bit concerning) , and understanding them should be part of your investment process.

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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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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