SIM Technology Group (HKG:2000) Shareholders Booked A 40% Gain In The Last Year

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 SIM Technology Group Limited (HKG:2000) share price is up 40% in the last year, clearly besting the market return of around 6.6% (not including dividends). That's a solid performance by our standards! On the other hand, longer term shareholders have had a tougher run, with the stock falling 2.5% in three years.

View our latest analysis for SIM Technology Group

SIM Technology Group isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

SIM Technology Group actually shrunk its revenue over the last year, with a reduction of 8.0%. Despite the lack of revenue growth, the stock has returned a solid 40% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

A Different Perspective

It's good to see that SIM Technology Group has rewarded shareholders with a total shareholder return of 40% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 0.3% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand SIM Technology Group better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for SIM Technology Group (of which 1 is a bit unpleasant!) you should know about.

We will like SIM Technology Group 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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