尽管微创医疗（HKG:853）的市值在过去一周内缩水了 9.7 亿港元，但其股东在一年内的收益仍然上涨了 149%
MicroPort Scientific (HKG:853) shareholders have seen a remarkable 149% increase in share price over the past year, despite a recent HK$970m decline. The stock rose 70% in the last quarter, although revenue shrank by 0.7% in the past year. The company has faced challenges, including a 1.5% drop over three years, and made a loss recently. Insider buying in the last three months is a positive sign, but caution is advised due to potential risks. Overall, the stock's performance raises questions about its fundamentals.
When you buy shares in a company, there is always a risk that the price drops to zero. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! Take, for example MicroPort Scientific Corporation (HKG:853). Its share price is already up an impressive 149% in the last twelve months. It's also good to see the share price up 70% over the last quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report. Unfortunately the longer term returns are not so good, with the stock falling 1.5% in the last three years.
Since the long term performance has been good but there's been a recent pullback of 3.7%, let's check if the fundamentals match the share price.
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Because MicroPort Scientific made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually desire strong 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.
In the last year MicroPort Scientific saw its revenue shrink by 0.7%. We're a little surprised to see the share price pop 149% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. It's quite likely the revenue fall was already priced in, anyway.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
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. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
We're pleased to report that MicroPort Scientific shareholders have received a total shareholder return of 149% over one year. That certainly beats the loss of about 9% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - MicroPort Scientific has 1 warning sign we think you should be aware of.
MicroPort Scientific is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong exchanges.
