● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The share is getting closer to its long-term support in weekly data, at HKD 4.39, which offers good timing for buyers.
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.15 for the 2019 fiscal year.
● Its low valuation, with P/E ratio at 10.29 and 9.09 for the ongoing fiscal year and 2020 respectively, makes the stock pretty attractive with regard to earnings multiples.
● 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.
Weaknesses
● The company has insufficient levels of profitability.
● The group usually releases earnings worse than estimated.
● Revenue estimates are regularly revised downwards for the current and coming years.
● Below the resistance at 6.16 HKD, the stock shows a negative configuration when looking looking at the weekly chart.