The Shandong Meichen Science & Technology Co.,Ltd. (SZSE:300237) share price has had a bad week, falling 11%. But that doesn't change the reality that over twelve months the stock has done really well. Looking at the full year, the company has easily bested an index fund by gaining 22%.

While this past week has detracted from the company's one-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.

Because Shandong Meichen Science & TechnologyLtd made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

In the last year Shandong Meichen Science & TechnologyLtd saw its revenue grow by 24%. We respect that sort of growth, no doubt. Buyers pushed the share price 22% in response, which isn't unreasonable. If the company can maintain the revenue growth, the share price could go higher still. But it's crucial to check profitability and cash flow before forming a view on the future.

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

If you are thinking of buying or selling Shandong Meichen Science & TechnologyLtd stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Shandong Meichen Science & TechnologyLtd shareholders have received a total shareholder return of 22% over one year. That certainly beats the loss of about 0.2% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Shandong Meichen Science & TechnologyLtd better, we need to consider many other factors. Even so, be aware that Shandong Meichen Science & TechnologyLtd is showing 3 warning signs in our investment analysis , you should know about...

Of course Shandong Meichen Science & TechnologyLtd 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 Chinese 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.