● 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 shows low valuation levels, with an enterprise value at 0.37 times its sales.
● Its low valuation, with P/E ratio at 7.13 and 12.34 for the ongoing fiscal year and 2021 respectively, makes the stock pretty attractive with regard to earnings multiples.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● 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.
● The tendency within the weekly time frame is positive above the technical support level at 12.88 HKD
Weaknesses
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The company is not the most generous with respect to shareholders' compensation.