Guangdong Hotata Technology Group Ltd (SHSE:603848) has seen its share price rise by 12% over the past five years, which is below the market average. The stock price has also fallen by 6.3% in the last year. Despite growing its earnings per share at 1.9% annually, the share price has only increased by an average of 2% each year, indicating that sentiment towards the company has not changed significantly. However, when taking into account dividends, the total shareholder return for Guangdong Hotata Technology Group Ltd over the last five years was 22%, exceeding the share price return.
While the stock may have underperformed the market in the short term, longer-term investors who held onto their shares for five years would have seen a return of 4% annually. This suggests that the company may still offer long-term sustainable growth opportunities. Investors interested in Guangdong Hotata Technology Group Ltd may want to consider its valuation compared to other companies and explore other growth stocks as well.
It’s important to note that market returns mentioned in the article reflect the market weighted average returns of stocks currently trading on Chinese exchanges. Investors are advised to conduct their own research and consider their financial objectives before making any investment decisions.
Source
Photo credit simplywall.st
