It might be of some concern to shareholders to see the Zhiyang Innovation Technology Co., Ltd. (SHSE:688191) share price down 10% in the last month. But that doesn't change the fact that the returns over the last year have been pleasing. After all, the share price is up a market-beating 13% in that time.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

Check out our latest analysis for Zhiyang Innovation Technology

While Zhiyang Innovation Technology made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In the last year Zhiyang Innovation Technology saw its revenue shrink by 15%. The stock is up 13% in that time, a fine performance given the revenue drop. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

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 Zhiyang Innovation Technology stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Zhiyang Innovation Technology shareholders should be happy with the total gain of 14% over the last twelve months, including dividends. A substantial portion of that gain has come in the last three months, with the stock up 3.1% in that time. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand Zhiyang Innovation Technology better, we need to consider many other factors. For example, we've discovered 4 warning signs for Zhiyang Innovation Technology (3 are concerning!) that you should be aware of before investing here.

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 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.