Summary

● 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.