COSCO SHIPPING Holdi

1919
End-of-day quote Stock Exchange of Hong Kong - 02/19
2.86HKD
-0.35%

COSCO SHIPPING Holdings Co., Ltd. : Good timing to go long again

Envoyer par e-mail
David Meurisse
Contributor / Partner

Strategy published on : 02/14/2020 | 10:23

long trade
Live

Entry price : 2.8HKD
Target : 3.17HKD
Stop-loss : 2.67HKD
Potential : 13.21%

The recent downward movement has sent COSCO SHIPPING Holdings Co., Ltd. shares back to attractive levels situated around 4.06 CNY. This zone could put an end to the downward movement and offers a good timing for new long positions.
Investors have an opportunity to buy the stock and target the HKD 3.17.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The share is getting closer to its long-term support in weekly data, at HKD 2.69, which offers good timing for buyers.

● The close medium term support offers good timing for purchasing the stock.

● Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.

● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.

● Its low valuation, with P/E ratio at 6.79 and 13.19 for the ongoing fiscal year and 2020 respectively, makes the stock pretty attractive with regard to earnings multiples.

● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock

● For several months, analysts have been revising their EPS estimates roughly upwards.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.


Weaknesses

● Low profitability weakens the company.

● The company is in a hindered financial situation with significant debt and rather low EBITDA levels.

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

● Most analysts agree on a negative opinion with regard to the stock. Indeed, the average consensus issues recommendations to underperform or sell.

Zonebourse.com 2020
Envoyer par e-mail