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

● As regards fundamentals, the enterprise value to sales ratio is at 1.1 for the current period. Therefore, the company is undervalued.

● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● 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 covering this company mostly recommend stock overweighting or purchase.

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


Weaknesses

● The company sustains low margins.

● 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.

● The company's earnings releases usually do not meet expectations.

● With a 2019 P/E ratio at 26.37 times the estimated earnings, the company operates at rather significant levels of earnings multiples.

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