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Chia Tai Enterprises International (HKG:3839) Delivers Shareholders Splendid 247% Return Over 1 Year, Surging 508% in the Last Week Alone

Simply Wall St ·  02/01/2023 06:20

When you buy shares in a company, there is always a risk that the price drops to zero. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Chia Tai Enterprises International Limited (HKG:3839) share price has soared 247% return in just a single year. Better yet, the 609% gain over the last thirty days has shareholders excited. Also impressive, the stock is up 175% over three years, making long term shareholders happy, too.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

View our latest analysis for Chia Tai Enterprises International

Given that Chia Tai Enterprises International 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Chia Tai Enterprises International grew its revenue by 36% last year. We respect that sort of growth, no doubt. The revenue growth is decent but the share price had an even better year, gaining 247%. Given that the business has made good progress on the top line, it would be worth taking a look at its path to profitability. Of course, we are always cautious about succumbing to 'fear of missing out' when a stock has shot up strongly.

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

earnings-and-revenue-growth
SEHK:3839 Earnings and Revenue Growth January 31st 2023

If you are thinking of buying or selling Chia Tai Enterprises International stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Chia Tai Enterprises International shareholders have received a total shareholder return of 247% over the last year. That gain is better than the annual TSR over five years, which is 14%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Even so, be aware that Chia Tai Enterprises International is showing 2 warning signs in our investment analysis , you should know about...

Of course Chia Tai Enterprises International 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 HK 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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