Hi Sun Technology (China) (HKG:818) Share Prices Have Dropped 26% In The Last Five Years

While it may not be enough for some shareholders, we think it is good to see the Hi Sun Technology (China) Limited (HKG:818) share price up 25% in a single quarter. But over the last half decade, the stock has not performed well. After all, the share price is down 26% in that time, significantly under-performing the market.

Check out our latest analysis for Hi Sun Technology (China)

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During the five years over which the share price declined, Hi Sun Technology (China)'s earnings per share (EPS) dropped by 4.7% each year. This change in EPS is reasonably close to the 6% average annual decrease in the share price. This implies that the market has had a fairly steady view of the stock. Rather, the share price change has reflected changes in earnings per share.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

Dive deeper into Hi Sun Technology (China)'s key metrics by checking this interactive graph of Hi Sun Technology (China)'s earnings, revenue and cash flow.

A Different Perspective

While the broader market gained around 6.8% in the last year, Hi Sun Technology (China) shareholders lost 13%. 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. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 5% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. Before forming an opinion on Hi Sun Technology (China) you might want to consider these 3 valuation metrics.

We will like Hi Sun Technology (China) better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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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