Shares in Sany Heavy Industry 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 CNY 14.98.
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.
Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 59% by 2021.
The group's high margin levels account for strong profits.
The company is in a robust financial situation considering its net cash and margin position.
Its low valuation, with P/E ratio at 10.46 and 9.3 for the ongoing fiscal year and 2020 respectively, makes the stock pretty attractive with regard to earnings multiples.
Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
Over the last twelve months, the sales forecast has been frequently revised upwards.
For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
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 10.9 CNY
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.
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