If You Had Bought TBK & Sons Holdings (HKG:1960) Shares A Year Ago You'd Have Earned 113% Returns

Simply Wall St
June 08, 2021
Source: Shutterstock

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right business to buy shares in, you can make more than you can lose. Take, for example TBK & Sons Holdings Limited (HKG:1960). Its share price is already up an impressive 113% in the last twelve months. On top of that, the share price is up 30% in about a quarter. We'll need to follow TBK & Sons Holdings for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

View our latest analysis for TBK & Sons Holdings

Because TBK & Sons Holdings 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. 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 year TBK & Sons Holdings saw its revenue shrink by 53%. We're a little surprised to see the share price pop 113% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. It's quite likely the revenue fall was already priced in, anyway.

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

SEHK:1960 Earnings and Revenue Growth June 8th 2021

If you are thinking of buying or selling TBK & Sons Holdings stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

TBK & Sons Holdings boasts a total shareholder return of 113% for the last year. And the share price momentum remains respectable, with a gain of 30% in the last three months. This suggests the company is continuing to win over new investors. 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. For example, we've discovered 3 warning signs for TBK & Sons Holdings (1 doesn't sit too well with us!) that you should be aware of before investing here.

Of course TBK & Sons Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.

If you’re looking to trade a wide range of investments, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.