Zhejiang Zheneng Electric Power Co., Ltd. (SHSE:600023) shareholders might be concerned after seeing the share price drop 16% in the last quarter. But that doesn't change the reality that over twelve months the stock has done really well. After all, the share price is up a market-beating 29% in that time.

Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.

View our latest analysis for Zhejiang Zheneng Electric Power

Given that Zhejiang Zheneng Electric Power only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Over the last twelve months, Zhejiang Zheneng Electric Power's revenue grew by 11%. That's not a very high growth rate considering it doesn't make profits. In keeping with the revenue growth, the share price gained 29% in that time. That's not a standout result, but it is solid - much like the level of revenue growth. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

We know that Zhejiang Zheneng Electric Power has improved its bottom line lately, but what does the future have in store? You can see what analysts are predicting for Zhejiang Zheneng Electric Power in this interactive graph of future profit estimates.

A Different Perspective

It's nice to see that Zhejiang Zheneng Electric Power shareholders have received a total shareholder return of 29% over the last year. That's better than the annualised return of 1.1% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Zhejiang Zheneng Electric Power (including 1 which doesn't sit too well with us) .

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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.