While stock picking isn't easy, for those willing to persist and learn, it is possible to buy shares in great companies, and generate wonderful returns. When you find (and hold) a big winner, you can markedly improve your finances. For example, Lifecome Biochemistry Co.,Ltd. (SZSE:002868) has generated a beautiful 403% return in just a single year. On top of that, the share price is up 131% in about a quarter. It is also impressive that the stock is up 299% over three years, adding to the sense that it is a real winner.

Although Lifecome BiochemistryLtd has shed CN¥681m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

See our latest analysis for Lifecome BiochemistryLtd

Because Lifecome BiochemistryLtd made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.

Over the last twelve months, Lifecome BiochemistryLtd's revenue grew by 8.1%. That's not a very high growth rate considering it doesn't make profits. So it's truly surprising that the share price rocketed 403% in a single year. It's great to see that some have made big profits, but we aren't so sure that the increase is justified. It just goes to show that big money can be made if you buy the right stock early.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Take a more thorough look at Lifecome BiochemistryLtd's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Lifecome BiochemistryLtd shareholders have received a total shareholder return of 403% over the last year. That's better than the annualised return of 25% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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. Even so, be aware that Lifecome BiochemistryLtd is showing 2 warning signs in our investment analysis , you should know about...

But note: Lifecome BiochemistryLtd may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CN exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.