Such Is Life: How AVIC International Holding (HK) (HKG:232) Shareholders Saw Their Shares Drop 59%

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While it may not be enough for some shareholders, we think it is good to see the AVIC International Holding (HK) Limited (HKG:232) share price up 14% in a single quarter. But that is small recompense for the exasperating returns over three years. In that time, the share price dropped 59%. So it is really good to see an improvement. After all, could be that the fall was overdone.

View our latest analysis for AVIC International Holding (HK)

Because AVIC International Holding (HK) is loss-making, 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over the last three years, AVIC International Holding (HK)'s revenue dropped 14% per year. That is not a good result. With revenue in decline, and profit but a dream, we can understand why the share price has been declining at 26% per year. Having said that, if growth is coming in the future, now may be the low ebb for the company. We'd be pretty wary of this one until it makes a profit, because we don't specialize in finding turnaround situations.

You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our freereport on AVIC International Holding (HK)'s earnings, revenue and cash flow.

A Different Perspective

We regret to report that AVIC International Holding (HK) shareholders are down 28% for the year. Unfortunately, that's worse than the broader market decline of 6.3%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 2.5% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

We will like AVIC International Holding (HK) better if we see some big insider buys. While we wait, check out this freelist of growing companies with considerable, recent, insider buying.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.