Weichai Power Co., Ltd. : The calm spell can be taken advantage of to put on new positions
Entry price | Target | Stop-loss | Potential |
---|
HK$16.96 |
HK$19.7 |
HK$15.7 |
+16.16% |
---|
The price of Weichai Power Co., Ltd. shares is range-bound. This phase will end sooner or later when volatility comes back.
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● The company is in a robust financial situation considering its net cash and margin position.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.56 for the 2020 fiscal year.
● The company's attractive earnings multiples are brought to light by a P/E ratio at 13.77 for the current year.
● Sales forecast by analysts have been recently revised upwards.
● 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.
● The stock is in a well-established, long-term rising trend above the technical support level at 13.98 HKD
Weaknesses● Stock prices approach a strong long-term resistance in weekly data at HKD 17.28.
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