Q Technology (Group)

1478
End-of-day quote Hong Kong Stock Exchange - 03/31
8.63HKD
+2.13%

Q Technology (Group) Company Limited : Attractive price levels

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David Meurisse
Contributor / Partner

Strategy published on : 03/26/2020 | 09:28

long trade
Live

Entry price : 8.42HKD
Target : 9.97HKD
Stop-loss : 7.4HKD
Potential : 18.41%

The decline over the past weeks has brought the price of Q Technology (Group) Company Limited shares back to an important technical support level at 8.56 HKD. This represents an opportunity to take advantage of these prices levels.
Investors have an opportunity to buy the stock and target the HKD 9.97.

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 current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at HKD 8.56 HKD in weekly data.

● Share prices are approaching a strong support area in daily data, which offers good timing for investors.

● The prospective high growth for the next fiscal years is among the main assets of the company

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

● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

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

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

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.

● The tendency within the weekly time frame is positive above the technical support level at 8.56 HKD


Weaknesses

● The company does not generate enough profits, which is an alarming weak point.

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

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