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Introducing Kin Pang Holdings (HKG:1722), The Stock That Dropped 38% In The Last Year

It's easy to match the overall market return by buying an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. For example, the Kin Pang Holdings Limited (HKG:1722) share price is down 38% in the last year. That contrasts poorly with the market return of -1.8%. Kin Pang Holdings may have better days ahead, of course; we've only looked at a one year period. Furthermore, it's down 31% in about a quarter. That's not much fun for holders. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.

See our latest analysis for Kin Pang Holdings

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Unhappily, Kin Pang Holdings had to report a 5.0% decline in EPS over the last year. This reduction in EPS is not as bad as the 38% share price fall. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

SEHK:1722 Past and Future Earnings, September 19th 2019
SEHK:1722 Past and Future Earnings, September 19th 2019

It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Dive deeper into the earnings by checking this interactive graph of Kin Pang Holdings's earnings, revenue and cash flow.

A Different Perspective

We doubt Kin Pang Holdings shareholders are happy with the loss of 38% over twelve months. That falls short of the market, which lost 1.8%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. With the stock down 31% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Kin Pang Holdings by clicking this link.

Kin Pang Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Thank you for reading.

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