The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. To wit, the Shenzhen Asia Link Technology Development Co.,Ltd. (SZSE:002316) share price is 99% higher than it was a year ago, much better than the market decline of around 6.4% (not including dividends) in the same period. That's a solid performance by our standards! However, the stock hasn't done so well in the longer term, with the stock only up 7.4% in three years.
After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.
See our latest analysis for Shenzhen Asia Link Technology DevelopmentLtd
Given that Shenzhen Asia Link Technology DevelopmentLtd 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Shenzhen Asia Link Technology DevelopmentLtd grew its revenue by 4.7% last year. That's not great considering the company is losing money. The modest growth is probably largely reflected in the share price, which is up 99%. While not a huge gain tht seems pretty reasonable. It could be worth keeping an eye on this one, especially if growth accelerates.
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 Shenzhen Asia Link Technology DevelopmentLtd stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It's good to see that Shenzhen Asia Link Technology DevelopmentLtd has rewarded shareholders with a total shareholder return of 99% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 0.6% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Shenzhen Asia Link Technology DevelopmentLtd better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Shenzhen Asia Link Technology DevelopmentLtd .
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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.