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Strong Week for Synthesis Electronic TechnologyLtd (SZSE:300479) Shareholders Doesn't Alleviate Pain of One-year Loss

Simply Wall St ·  Jun 26 19:16

Synthesis Electronic Technology Co.,Ltd. (SZSE:300479) shareholders should be happy to see the share price up 16% in the last month. The stock is actually down over the last year. But at least it bettered the loss of 16% in its market.

On a more encouraging note the company has added CN¥455m 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.

Given that Synthesis Electronic TechnologyLtd 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In just one year Synthesis Electronic TechnologyLtd saw its revenue fall by 14%. That looks pretty grim, at a glance. The stock is down just 15% over twelve months, which is not bad all things considered. So it's fair to say the weak revenue was no surprise to shareholders. It seems some people think the business stock will become profitable - the question is when

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
SZSE:300479 Earnings and Revenue Growth June 26th 2024

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

Synthesis Electronic TechnologyLtd shareholders are down 15% over twelve months, which isn't far from the market return of -16%. Longer term investors wouldn't be so upset, since they would have made 1.8%, each year, over five years. If the fundamental data remains strong, and the share price is simply down on sentiment, then this could be an opportunity worth investigating. It's always interesting to track share price performance over the longer term. But to understand Synthesis Electronic TechnologyLtd better, we need to consider many other factors. Take risks, for example - Synthesis Electronic TechnologyLtd has 1 warning sign we think you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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

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

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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