If You Had Bought Hsinjing Holding (GTSM:3713) Stock A Year Ago, You Could Pocket A 298% Gain Today

When you buy shares in a company, there is always a risk that the price drops to zero. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Hsinjing Holding Co., Ltd. (GTSM:3713) share price has soared 298% in the last year. Most would be very happy with that, especially in just one year! It's also good to see the share price up 43% over the last quarter. We'll need to follow Hsinjing Holding for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

Check out our latest analysis for Hsinjing Holding

Hsinjing Holding 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Hsinjing Holding actually shrunk its revenue over the last year, with a reduction of 58%. So we would not have expected the share price to rise 298%. It just goes to show the market doesn't always pay attention to the reported numbers. It's quite likely the revenue fall was already priced in, anyway.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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

A Different Perspective

Hsinjing Holding boasts a total shareholder return of 298% for the last year. The more recent returns haven't been as impressive as the longer term returns, coming in at just 43%. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Hsinjing Holding is showing 2 warning signs in our investment analysis , you should know about...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on TW 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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