Did You Miss Xinghua Port Holdings' (HKG:1990) Impressive 132% Share Price Gain?

When you buy shares in a company, there is always a risk that the price drops to zero. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Xinghua Port Holdings Ltd. (HKG:1990) share price has soared 132% in the last year. Most would be very happy with that, especially in just one year! On top of that, the share price is up 117% in about a quarter. We'll need to follow Xinghua Port Holdings for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

View our latest analysis for Xinghua Port Holdings

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Xinghua Port Holdings was able to grow EPS by 58% in the last twelve months. The share price gain of 132% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.

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

We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Dive deeper into the earnings by checking this interactive graph of Xinghua Port Holdings' earnings, revenue and cash flow.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Xinghua Port Holdings, it has a TSR of 149% for the last year. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

Xinghua Port Holdings boasts a total shareholder return of 149% for the last year (that includes the dividends) . And the share price momentum remains respectable, with a gain of 117% in the last three months. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand Xinghua Port Holdings better, we need to consider many other factors. For example, we've discovered 3 warning signs for Xinghua Port Holdings (1 is significant!) that you should be aware of before investing here.

Xinghua Port Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with 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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