Recent 14% pullback isn't enough to hurt long-term Touyun Biotech Group (HKG:1332) shareholders, they're still up 46% over 1 year

Touyun Biotech Group Limited (HKG:1332) shareholders might be concerned after seeing the share price drop 14% in the last week. But that doesn't change the fact that the returns over the last year have been respectable. After all, the stock has performed better than the market's return of (38%) over the last year, and is up 46%.

While the stock has fallen 14% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

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Touyun Biotech Group 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last twelve months, Touyun Biotech Group's revenue grew by 0.3%. That's not great considering the company is losing money. The modest growth is probably largely reflected in the share price, which is up 46%. While not a huge gain tht seems pretty reasonable. It could be worth keeping an eye on this one, especially if growth accelerates.

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's nice to see that Touyun Biotech Group shareholders have received a total shareholder return of 46% over the last year. Notably the five-year annualised TSR loss of 8% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Touyun Biotech Group better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Touyun Biotech Group you should be aware of, and 3 of them are concerning.

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 Hong Kong 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.