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I've been keeping an eye on Sunny Optical Technology (Group) Company Limited (HKG:2382) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 2382 has a lot to offer. Basically, it is a company with impressive financial health as well as a excellent future outlook. 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, take a look at the report on Sunny Optical Technology (Group) here.
High growth potential with adequate balance sheet
One reason why investors are attracted to 2382 is its notable earnings growth potential in the near future of 26%. This growth in the bottom-line is bolstered by an impressive top-line expansion of 59% over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. 2382's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that 2382 has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. 2382 appears to have made good use of debt, producing operating cash levels of 0.64x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Sunny Optical Technology (Group), there are three essential factors you should further research:
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Historical Performance: What has 2382's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Valuation: What is 2382 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 2382 is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 2382? 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.