Shareholders have faith in loss-making Ying Han Technology (TWSE:4562) as stock climbs 19% in past week, taking one-year gain to 374%

While stock picking isn't easy, for those willing to persist and learn, it is possible to buy shares in great companies, and generate wonderful returns. When an investor finds a multi-bagger (a stock that goes up over 200%), it makes a big difference to their portfolio. For example, the Ying Han Technology Co., Ltd. (TWSE:4562) share price rocketed moonwards 374% in just one year. And in the last week the share price has popped 19%. It is also impressive that the stock is up 301% over three years, adding to the sense that it is a real winner.

The past week has proven to be lucrative for Ying Han Technology investors, so let's see if fundamentals drove the company's one-year performance.

Check out our latest analysis for Ying Han Technology

Ying Han Technology wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year Ying Han Technology saw its revenue shrink by 8.1%. This is in stark contrast to the splendorous stock price, which has rocketed 374% since this time a year ago. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. While this gain looks like speculative buying to us, sometimes speculation pays off.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

This free interactive report on Ying Han Technology'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 Ying Han Technology has rewarded shareholders with a total shareholder return of 374% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 20% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Ying Han Technology better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Ying Han Technology you should be aware of.

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 Taiwanese 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.