China Display Optoelectronics Technology Holdings Limited (HKG:334) Has Attractive Fundamentals

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I've been keeping an eye on China Display Optoelectronics Technology Holdings Limited (HKG:334) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 334 has a lot to offer. Basically, it has a a great track record of performance as well as a buoyant future outlook going forward. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on China Display Optoelectronics Technology Holdings here.

Proven track record with reasonable growth potential

334 is an attractive stock for growth-seeking investors, with an expected earnings growth of 48% in the upcoming year, bolstered by its outstanding cash-generating ability, as analysts predict its operating cash flows will more than double over the same time period. This is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. 334 delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. Not only did 334 outperformed its past performance, its growth also surpassed the Tech industry expansion, which generated a -4.8% earnings growth. This is an optimistic signal for the future.

SEHK:334 Past and Future Earnings, August 23rd 2019
SEHK:334 Past and Future Earnings, August 23rd 2019

Next Steps:

For China Display Optoelectronics Technology Holdings, I've put together three relevant factors you should further research:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Valuation: What is 334 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether 334 is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 334? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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