Zhongsheng Group Holdings Limited shares have recently experienced an upward movement with a return of higher volumes and volatility. This technical chart pattern suggests a continuation of the upward movement. Investors have an opportunity to buy the stock and target the HKD 31.9.
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.
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 42% by 2021.
The company shows low valuation levels, with an enterprise value at 0.69 times its sales.
Over the last twelve months, the sales forecast has been frequently revised upwards.
Analysts covering this company mostly recommend stock overweighting or purchase.
Within the weekly time frame the stock shows a bullish technical configuration above the support level at 20.35 HKD
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.
The stock is close to a major daily resistance at HKD 34.2, which should be gotten rid of so as to gain new appreciation potential.
The company sustains low margins.
The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
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