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 stock, which is currently worth 2019 to 0.23 times its sales, is clearly overvalued in comparison with peers.

● Its low valuation, with P/E ratio at 6.76 and 6.07 for the ongoing fiscal year and 2020 respectively, makes the stock pretty attractive with regard to earnings multiples.

● Sales forecast by analysts have been recently revised upwards.

● 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.


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 CNY 10.21, which should be gotten rid of so as to gain new appreciation potential.

● The company has insufficient levels of profitability.

● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 10.53 CNY