Fujian Furi Electronics Co.,Ltd (SHSE:600203) shareholders might be concerned after seeing the share price drop 18% in the last month. But looking back over the last year, the returns have actually been rather pleasing! To wit, it had solidly beat the market, up 24%.

Since the stock has added CN¥457m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

Given that Fujian Furi ElectronicsLtd 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 hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

Fujian Furi ElectronicsLtd actually shrunk its revenue over the last year, with a reduction of 22%. Despite the lack of revenue growth, the stock has returned a solid 24% the last twelve months. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at Fujian Furi ElectronicsLtd's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Fujian Furi ElectronicsLtd shareholders have received a total shareholder return of 24% over the last year. That's better than the annualised return of 1.5% 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. 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. Case in point: We've spotted 2 warning signs for Fujian Furi ElectronicsLtd you should be aware of.

We will like Fujian Furi ElectronicsLtd 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.