● 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
● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.35 for the 2020 fiscal year.
● Its low valuation, with P/E ratio at 4.74 and 4.1 for the ongoing fiscal year and 2021 respectively, makes the stock pretty attractive with regard to earnings multiples.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
Weaknesses
● Low profitability weakens the company.
● The group shows a rather high level of debt in proportion to its EBITDA.
● Most analysts recommend that the stock should be sold or reduced.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 7.29 CNY