Strategy published on : 09/15/2020 | 02:54
Entry price : 11.82HKD
Target : 13HKD
Stop-loss : 10.5HKD
Potential : 9.98%
Shares in China Resources Cement Holdings Limited show a positive technical chart pattern over the medium term, which suggests that the rising trend should be followed.
Investors have an opportunity to buy the stock and target the HKD 13.
● 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.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● Its low valuation, with P/E ratio at 8.8 and 8.81 for the ongoing fiscal year and 2021 respectively, makes the stock pretty attractive with regard to earnings multiples.
● This company will be of major interest to investors in search of a high dividend stock.
● Over the last twelve months, the sales forecast has been frequently revised 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.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 9.86 HKD
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● Technically, the stock approaches a strong medium-term resistance at HKD 12.42.