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.
Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.
There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.25 for the 2020 fiscal year.
Its low valuation, with P/E ratio at 4.97 and 4.46 for the ongoing fiscal year and 2021 respectively, makes the stock pretty attractive with regard to earnings multiples.
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.
Analysts covering this company mostly recommend stock overweighting or purchase.
The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Stock prices approach a strong long-term resistance in weekly data at CNY 5.37.
The company does not generate enough profits, which is an alarming weak point.
The group usually releases earnings worse than estimated.
The technical configuration over the long term remains negative on the weekly chart below the resistance level at 5.37 CNY