Recent 16% pullback isn't enough to hurt long-term Great China Holdings (Hong Kong) (HKG:21) shareholders, they're still up 126% over 1 year

While Great China Holdings (Hong Kong) Limited (HKG:21) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 27% in the last quarter. On the other hand, over the last twelve months the stock has delivered rather impressive returns. Indeed, the share price is up an impressive 126% in that time. So we think most shareholders won't be too upset about the recent fall. More important, going forward, is how the business itself is going.

Although Great China Holdings (Hong Kong) has shed HK$87m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

Check out our latest analysis for Great China Holdings (Hong Kong)

Given that Great China Holdings (Hong Kong) 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. When a company doesn't make profits, we'd generally hope to see good 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.

Great China Holdings (Hong Kong) actually shrunk its revenue over the last year, with a reduction of 59%. We're a little surprised to see the share price pop 126% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. It might be well worthwhile taking a look at our free report on Great China Holdings (Hong Kong)'s earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Great China Holdings (Hong Kong) shareholders have received a total shareholder return of 126% over one year. There's no doubt those recent returns are much better than the TSR loss of 0.2% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. 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. For example, we've discovered 3 warning signs for Great China Holdings (Hong Kong) (1 is concerning!) that you should be aware of before investing here.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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.