Shanghai DragonNet TechnologyLtd (SZSE:300245) adds CN¥468m to market cap in the past 7 days, though investors from five years ago are still down 20%

It is doubtless a positive to see that the Shanghai DragonNet Technology Co.,Ltd. (SZSE:300245) share price has gained some 47% in the last three months. But if you look at the last five years the returns have not been good. After all, the share price is down 20% in that time, significantly under-performing the market.

The recent uptick of 25% could be a positive sign of things to come, so let's take a look at historical fundamentals.

Check out our latest analysis for Shanghai DragonNet TechnologyLtd

Because Shanghai DragonNet TechnologyLtd 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last half decade, Shanghai DragonNet TechnologyLtd saw its revenue increase by 4.0% per year. That's far from impressive given all the money it is losing. Given the weak growth, the share price fall of 4% isn't particularly surprising. The key question is whether the company can make it to profitability, and beyond, without trouble. It could be worth putting it on your watchlist and revisiting when it makes its maiden profit.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

If you are thinking of buying or selling Shanghai DragonNet TechnologyLtd stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We regret to report that Shanghai DragonNet TechnologyLtd shareholders are down 12% for the year. Unfortunately, that's worse than the broader market decline of 10%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 4% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Shanghai DragonNet TechnologyLtd better, we need to consider many other factors. For example, we've discovered 2 warning signs for Shanghai DragonNet TechnologyLtd that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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