The company has poor fundamentals for a short-term investment strategy.
Strengths
The share is getting closer to its long-term support in weekly data, at CNY 6.04, which offers good timing for buyers.
Share prices are approaching a strong support area in daily data, which offers good timing for investors.
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 45% by 2022.
The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
The company is one of the best yield companies with high dividend expectations.
Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
The company is in a hindered financial situation with significant debt and rather low EBITDA levels.
The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.
For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
For the last few months, analysts have been revising downwards their earnings forecast.
For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
The technical configuration over the long term remains negative on the weekly chart below the resistance level at 6.83 CNY