Sunyes Manufacturing (Zhejiang) Holding Co., Ltd. (SZSE:002388) shareholders should be happy to see the share price up 29% in the last month. But that is minimal compensation for the share price under-performance over the last year. In fact the stock is down 28% in the last year, well below the market return.

The recent uptick of 16% could be a positive sign of things to come, so let's take a look at historical fundamentals.

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Sunyes Manufacturing (Zhejiang) Holding fell to a loss making position during the year. Buyers no doubt think it's a temporary situation, but those with a nose for quality have low tolerance for losses. Of course, if the company can turn the situation around, investors will likely profit.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Dive deeper into Sunyes Manufacturing (Zhejiang) Holding's key metrics by checking this interactive graph of Sunyes Manufacturing (Zhejiang) Holding's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 13% in the twelve months, Sunyes Manufacturing (Zhejiang) Holding shareholders did even worse, losing 28%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 2% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Sunyes Manufacturing (Zhejiang) Holding better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Sunyes Manufacturing (Zhejiang) Holding (including 1 which can't be ignored) .

Of course Sunyes Manufacturing (Zhejiang) Holding may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.