Summary

● 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

● 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


Weaknesses

● 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.