Tianli Holdings Group (HKG:117) pops 15% this week, taking one-year gains to 197%

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Tianli Holdings Group Limited (HKG:117) share price has soared 197% in the last 1 year. Most would be very happy with that, especially in just one year! Also pleasing for shareholders was the 20% gain in the last three months. However, the longer term returns haven't been so impressive, with the stock up just 3.8% in the last three years.

Since it's been a strong week for Tianli Holdings Group shareholders, let's have a look at trend of the longer term fundamentals.

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Because Tianli Holdings Group 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 hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

In the last year Tianli Holdings Group saw its revenue grow by 28%. That's a fairly respectable growth rate. The revenue growth is decent but the share price had an even better year, gaining 197%. Given that the business has made good progress on the top line, it would be worth taking a look at its path to profitability. Of course, we are always cautious about succumbing to 'fear of missing out' when a stock has shot up strongly.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

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

A Different Perspective

It's good to see that Tianli Holdings Group has rewarded shareholders with a total shareholder return of 197% in the last twelve months. That certainly beats the loss of about 1.3% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Tianli Holdings Group (of which 3 are significant!) you should know about.

But note: Tianli Holdings Group 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 Hong Kong exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.