Great Wall Motor Company Limited : The trend should regain control

09/14/2021 | 03:03am EDT

Tommy Douziech

long trade Stop-loss triggered

Entry price : 32.4HKD | Target : 39.95HKD | Stop-loss : 29HKD | Potential : 23.3%

The timing appears opportune to go long in shares of Great Wall Motor Company Limited as we anticipate another pick-up in the underlying trend. Investors have an opportunity to buy the stock and target the HKD 39.95.

Summary

• The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
• The company presents an interesting fundamental situation from a short-term investment perspective.

Strengths

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

The earnings growth currently anticipated by analysts for the coming years is particularly strong.

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

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

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

Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.

Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

Over the past four months, analysts' average price target has been revised upwards significantly.

The opinion of analysts covering the stock has improved over the past four months.

Consensus analysts have strongly revised their opinion of the company over the past 12 months.

The group usually releases upbeat results with huge surprise rates.

Weaknesses

• The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
• In relation to the value of its tangible assets, the company's valuation appears relatively high.
• The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.

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