It's easy to match the overall market return by buying an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. Unfortunately the Jinhui Mining Incorporation Limited (SHSE:603132) share price slid 11% over twelve months. That falls noticeably short of the market decline of around 7.4%. Jinhui Mining Incorporation may have better days ahead, of course; we've only looked at a one year period. Furthermore, it's down 11% in about a quarter. That's not much fun for holders. However, one could argue that the price has been influenced by the general market, which is down 4.7% in the same timeframe.

On a more encouraging note the company has added CN¥528m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.

See our latest analysis for Jinhui Mining Incorporation

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.

Unfortunately Jinhui Mining Incorporation reported an EPS drop of 22% for the last year. The share price fall of 11% isn't as bad as the reduction in earnings per share. It may have been that the weak EPS was not as bad as some had feared.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

It might be well worthwhile taking a look at our free report on Jinhui Mining Incorporation's earnings, revenue and cash flow.

A Different Perspective

We doubt Jinhui Mining Incorporation shareholders are happy with the loss of 10% over twelve months (even including dividends). That falls short of the market, which lost 7.4%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. It's worth noting that the last three months did the real damage, with a 11% decline. So it seems like some holders have been dumping the stock of late - and that's not bullish. It's always interesting to track share price performance over the longer term. But to understand Jinhui Mining Incorporation better, we need to consider many other factors. For instance, we've identified 1 warning sign for Jinhui Mining Incorporation that you should be aware of.

We will like Jinhui Mining Incorporation better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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.