Unfortunately, investing is risky – companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. Take, for example Jintai Energy Holdings Limited (HKG:2728). Its share price is already up an impressive 129% in the last twelve months. On top of that, the share price is up 14% in about a quarter. This could be related to the recent financial results, released recently – you can catch up on the most recent data by reading our company report. In contrast, the longer term returns are negative, since the share price is 54% lower than it was three years ago.
See our latest analysis for Jintai Energy Holdings
Given that Jintai Energy Holdings 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 expect to see good revenue growth. That’s because it’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Jintai Energy Holdings grew its revenue by 62% last year. That’s well above most other pre-profit companies. And the share price has responded, gaining 129% as we previously mentioned. It’s great to see strong revenue growth, but the question is whether it can be sustained. Given the positive sentiment around the stock we’re cautious, but there’s no doubt its worth watching.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
SEHK:2728 Income Statement May 11th 2020
We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at our free report on Jintai Energy Holdings’s earnings, revenue and cash flow.
A Different Perspective
We’re pleased to report that Jintai Energy Holdings shareholders have received a total shareholder return of 129% over one year. There’s no doubt those recent returns are much better than the TSR loss of 15% per year over five years. 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 – Jintai Energy Holdings has 5 warning signs (and 2 which are potentially serious) we think you should know about.
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 HK exchanges.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.