ShiFang Holding (HKG:1831) shareholder returns have been splendid, earning 187% in 1 year

By
Simply Wall St
Published
August 30, 2021
SEHK:1831
Source: Shutterstock

Unfortunately, investing is risky - companies can and do go bankrupt. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the ShiFang Holding Limited (HKG:1831) share price has soared 187% in the last 1 year. Most would be very happy with that, especially in just one year! Also pleasing for shareholders was the 39% gain in the last three months. It is also impressive that the stock is up 45% over three years, adding to the sense that it is a real winner.

The past week has proven to be lucrative for ShiFang Holding investors, so let's see if fundamentals drove the company's one-year performance.

See our latest analysis for ShiFang Holding

Because ShiFang Holding 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 fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last twelve months, ShiFang Holding's revenue grew by 3.2%. That's not great considering the company is losing money. In contrast, the share price took off during the year, gaining 187%. We're happy that investors have made money, though we wonder if the increase will be sustained. It's quite likely that the market is considering other factors, not just revenue growth.

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

earnings-and-revenue-growth
SEHK:1831 Earnings and Revenue Growth August 30th 2021

This free interactive report on ShiFang Holding's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

We're pleased to report that ShiFang Holding shareholders have received a total shareholder return of 187% over one year. That certainly beats the loss of about 12% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand ShiFang Holding better, we need to consider many other factors. To that end, you should learn about the 5 warning signs we've spotted with ShiFang Holding (including 2 which shouldn't be ignored) .

Of course ShiFang Holding 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.

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