Stock Analysis

How Much Did Sinolink Worldwide Holdings'(HKG:1168) Shareholders Earn From Share Price Movements Over The Last Three Years?

SEHK:1168
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Investing in stocks inevitably means buying into some companies that perform poorly. But the last three years have been particularly tough on longer term Sinolink Worldwide Holdings Limited (HKG:1168) shareholders. Unfortunately, they have held through a 59% decline in the share price in that time. More recently, the share price has dropped a further 25% in a month.

See our latest analysis for Sinolink Worldwide Holdings

Because Sinolink Worldwide 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last three years Sinolink Worldwide Holdings saw its revenue shrink by 48% per year. That means its revenue trend is very weak compared to other loss making companies. With no profits and falling revenue it is no surprise that investors have been dumping the stock, pushing the price down by 17% per year over that time. When revenue is dropping, and losses are still costing, and the share price sinking fast, it's fair to ask if something is remiss. It could be a while before the company repays long suffering shareholders with share price gains.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
SEHK:1168 Earnings and Revenue Growth February 4th 2021

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

A Different Perspective

While the broader market gained around 25% in the last year, Sinolink Worldwide Holdings shareholders lost 5.1%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. However, the loss over the last year isn't as bad as the 10% per annum loss investors have suffered over the last half decade. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. 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 Sinolink Worldwide Holdings is showing 3 warning signs in our investment analysis , and 1 of those is significant...

But note: Sinolink Worldwide Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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