Summary

● 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.


Strengths

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

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● As regards fundamentals, the enterprise value to sales ratio is at 1.58 for the current period. Therefore, the company is undervalued.

● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.

● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● For several months, analysts have been revising their EPS estimates roughly upwards.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● Analysts covering this company mostly recommend stock overweighting or purchase.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 252.4 HKD


Weaknesses

● Low profitability weakens the company.

● 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 is not the most generous with respect to shareholders' compensation.