Would Shareholders Who Purchased Huifu Payment's (HKG:1806) Stock Year Be Happy With The Share price Today?

Huifu Payment Limited (HKG:1806) shareholders should be happy to see the share price up 10% in the last month. But that doesn't change the reality of under-performance over the last twelve months. After all, the share price is down 20% in the last year, significantly under-performing the market.

See our latest analysis for Huifu Payment

Given that Huifu Payment 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 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 just one year Huifu Payment saw its revenue fall by 5.2%. That looks pretty grim, at a glance. Shareholders have seen the share price drop 20% in that time. What would you expect when revenue is falling, and it doesn't make a profit? We think most holders must believe revenue growth will improve, or else costs will decline.

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

Given that the market gained 16% in the last year, Huifu Payment shareholders might be miffed that they lost 20%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. With the stock down 15% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand Huifu Payment better, we need to consider many other factors. For instance, we've identified 1 warning sign for Huifu Payment that you should be aware of.

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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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