Kingkey Financial International (Holdings) Limited (HKG:1468) shareholders might be concerned after seeing the share price drop 21% in the last quarter. But that doesn't change the reality that over twelve months the stock has done really well. In that time we've seen the stock easily surpass the market return, with a gain of 33%.
Kingkey Financial International (Holdings) wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. 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.
Kingkey Financial International (Holdings) actually shrunk its revenue over the last year, with a reduction of 23%. The stock is up 33% in that time, a fine performance given the revenue drop. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on Kingkey Financial International (Holdings)'s earnings, revenue and cash flow.
A Different Perspective
We're pleased to report that Kingkey Financial International (Holdings) shareholders have received a total shareholder return of 33% over one year. That gain is better than the annual TSR over five years, which is 4.5%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Kingkey Financial International (Holdings) better, we need to consider many other factors. Even so, be aware that Kingkey Financial International (Holdings) is showing 4 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...
But note: Kingkey Financial International (Holdings) 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 HK exchanges.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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