Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Hao Tian International Construction Investment Group Limited (HKG:1341) share price has soared 290% in the last 1 year. Most would be very happy with that, especially in just one year! It's also good to see the share price up 33% over the last quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. Looking back further, the stock price is 271% higher than it was three years ago.
The past week has proven to be lucrative for Hao Tian International Construction Investment Group investors, so let's see if fundamentals drove the company's one-year performance.
See our latest analysis for Hao Tian International Construction Investment Group
Hao Tian International Construction Investment 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year Hao Tian International Construction Investment Group saw its revenue shrink by 9.5%. We're a little surprised to see the share price pop 290% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
If you are thinking of buying or selling Hao Tian International Construction Investment Group stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It's nice to see that Hao Tian International Construction Investment Group shareholders have received a total shareholder return of 290% over the last year. That gain is better than the annual TSR over five years, which is 28%. Therefore it seems like sentiment around the company has been positive lately. 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 Hao Tian International Construction Investment Group better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Hao Tian International Construction Investment Group .
Of course Hao Tian International Construction Investment Group may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong exchanges.
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