---
title: "Xinzhi Group (SZSE:002664) investors are up 13% in the past week, but earnings have declined over the last year"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/230026667.md"
description: "Xinzhi Group (SZSE:002664) has seen a 13% increase in share price over the past week, with a 58% rise over the last year, outperforming the market's 19% return. However, the company's earnings per share (EPS) declined by 34% in the same period. Despite this, revenue grew by 36%, indicating potential for future growth. The total shareholder return over the past year is 59%, suggesting positive sentiment. Investors should be cautious, as there are two warning signs in the investment analysis."
datetime: "2025-02-28T04:56:25.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/230026667.md)
  - [en](https://longbridge.com/en/news/230026667.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/230026667.md)
generator: "portal-rs"
---

# Xinzhi Group (SZSE:002664) investors are up 13% in the past week, but earnings have declined over the last year

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But investors can boost returns by picking market-beating companies to own shares in. To wit, the **Xinzhi Group Co., Ltd.** (SZSE:002664) share price is 58% higher than it was a year ago, much better than the market return of around 19% (not including dividends) in the same period. So that should have shareholders smiling. And shareholders have also done well over the long term, with an increase of 37% in the last three years.

The past week has proven to be lucrative for Xinzhi Group investors, so let's see if fundamentals drove the company's one-year performance. 

 View our latest analysis for Xinzhi Group 

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. 

Over the last twelve months, Xinzhi Group actually shrank its EPS by 34%. 

Given the share price gain, we doubt the market is measuring progress with EPS. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics. 

We doubt the modest 0.3% dividend yield is doing much to support the share price. However the year on year revenue growth of 36% would help. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best. 

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

SZSE:002664 Earnings and Revenue Growth February 28th 2025

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 good to see that Xinzhi Group has rewarded shareholders with a total shareholder return of 59% in the last twelve months. That's including the dividend. That gain is better than the annual TSR over five years, which is 7%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Xinzhi Group is showing **2 warning signs in our investment analysis** , you should know about... 

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 Chinese exchanges.*

### Related Stocks

- [002664.CN](https://longbridge.com/en/quote/002664.CN.md)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**