Hunan Lead Power Technology Group Co., Ltd. (SZSE:300530) shareholders should be happy to see the share price up 23% in the last quarter. But that doesn't help the fact that the three year return is less impressive. In fact, the share price is down 48% in the last three years, falling well short of the market return.

If the past week is anything to go by, investor sentiment for Hunan Lead Power Technology Group isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Given that Hunan Lead Power Technology Group didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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.

Over the last three years, Hunan Lead Power Technology Group's revenue dropped 1.2% per year. That's not what investors generally want to see. The annual decline of 14% per year in that period has clearly disappointed holders. And with no profits, and weak revenue, are you surprised? Of course, sentiment could become too negative, and the company may actually be making progress to profitability.

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

Take a more thorough look at Hunan Lead Power Technology Group's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Hunan Lead Power Technology Group shareholders have received a total shareholder return of 8.4% over one year. That certainly beats the loss of about 1.5% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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. Take risks, for example - Hunan Lead Power Technology Group has 2 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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.