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BAIC BluePark New Energy TechnologyLtd (SHSE:600733 Shareholders Incur Further Losses as Stock Declines 8.2% This Week, Taking Five-year Losses to 29%

Simply Wall St ·  Nov 18, 2023 19:19

It is a pleasure to report that the BAIC BluePark New Energy Technology Co.,Ltd. (SHSE:600733) is up 33% in the last quarter. But over the last half decade, the stock has not performed well. You would have done a lot better buying an index fund, since the stock has dropped 29% in that half decade.

With the stock having lost 8.2% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

Check out our latest analysis for BAIC BluePark New Energy TechnologyLtd

Given that BAIC BluePark New Energy TechnologyLtd 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last five years BAIC BluePark New Energy TechnologyLtd saw its revenue shrink by 20% per year. That's definitely a weaker result than most pre-profit companies report. On the face of it we'd posit the share price fall of 5% compound, over five years is well justified by the fundamental deterioration. This loss means the stock shareholders are probably pretty annoyed. Risk averse investors probably wouldn't like this one much.

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

earnings-and-revenue-growth
SHSE:600733 Earnings and Revenue Growth November 19th 2023

If you are thinking of buying or selling BAIC BluePark New Energy TechnologyLtd stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that BAIC BluePark New Energy TechnologyLtd shareholders have received a total shareholder return of 11% over the last year. Notably the five-year annualised TSR loss of 5% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 4 warning signs for BAIC BluePark New Energy TechnologyLtd (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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