If You Had Bought Hailan Holdings (HKG:2278) Shares A Year Ago You'd Have Earned 47% Returns

The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. For example, the Hailan Holdings Limited (HKG:2278) share price is up 47% in the last year, clearly besting the market return of around 17% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! However, the longer term returns haven't been so impressive, with the stock up just 4.7% in the last three years.

View our latest analysis for Hailan Holdings

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Hailan Holdings went from making a loss to reporting a profit, in the last year.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

We think that the revenue growth of 36% could have some investors interested. We do see some companies suppress earnings in order to accelerate revenue growth.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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

A Different Perspective

Pleasingly, Hailan Holdings' total shareholder return last year was 47%. So this year's TSR was actually better than the three-year TSR (annualized) of 1.5%. Given the track record of solid returns over varying time frames, it might be worth putting Hailan Holdings on your watchlist. It's always interesting to track share price performance over the longer term. But to understand Hailan Holdings better, we need to consider many other factors. Take risks, for example - Hailan Holdings has 3 warning signs (and 2 which don't sit too well with us) we think you should know about.

But note: Hailan 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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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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