Shares in Fujian Torch Electron Technology Co., Ltd. show a positive technical chart pattern over the medium term, which suggests that the rising trend should be followed.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● The prospective high growth for the next fiscal years is among the main assets of the company
● The group's high margin levels account for strong profits.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
● 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.
● The stock is in a well-established, long-term rising trend above the technical support level at 42.46 CNY
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 group usually releases earnings worse than estimated.
● With an expected P/E ratio at 53.67 and 39.8 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
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Fujian Torch Electron Technology Co Ltd is a China-based company mainly engaged in the production and sales of electronic components. The Company's main businesses include research and development (R&D) and production of capacitors and related products, testing and service business, R&D of high-performance special ceramic materials, international trade of capacitor devices. The Company's main products include chip multilayer ceramic capacitors, leaded multilayer ceramic capacitors and multi-core group ceramic capacitors, which are mainly used in military markets such as aviation, aerospace, ships, weapons, electronic countermeasures, and system communication equipment, industrial control equipment, medical electronic equipment, consumer electronics and other civilian markets.