Stock Analysis

Introducing Great Wall Belt & Road Holdings (HKG:524), The Stock That Zoomed 156% In The Last Year

SEHK:524
Source: Shutterstock

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right stock, you can make a lot more than 100%. For example, the Great Wall Belt & Road Holdings Limited (HKG:524) share price has soared 156% return in just a single year. Better yet, the share price has gained 307% in the last quarter. However, the stock hasn't done so well in the longer term, with the stock only up 11% in three years.

View our latest analysis for Great Wall Belt & Road Holdings

Given that Great Wall Belt & Road Holdings 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last twelve months, Great Wall Belt & Road Holdings' revenue grew by 15%. That's a fairly respectable growth rate. While that revenue growth is pretty good the share price performance outshone it, with a lift of 156% as mentioned above. Given that the business has made good progress on the top line, it would be worth taking a look at its path to profitability. But investors need to be wary of how the 'fear of missing out' could influence them to buy without doing thorough research.

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

earnings-and-revenue-growth
SEHK:524 Earnings and Revenue Growth December 25th 2020

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's nice to see that Great Wall Belt & Road Holdings shareholders have received a total shareholder return of 156% over the last year. That certainly beats the loss of about 6% per year over the last half decade. 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 Great Wall Belt & Road Holdings better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with Great Wall Belt & Road Holdings (including 2 which are a bit unpleasant) .

If you are like me, then you will not want to miss this free list of growing companies that insiders are 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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