A lot of people can't understand why an undervalued stock doesn't go up as soon as they buy it. The fact is a stock can be undervalued for years. There is simply no way to know when the market will recognize an undervalued company. That's why we hear nonsense about technical analysis. That's why some folks get impatient and sell too early. There is only one long term way to make money. Buy undervalued stocks on dips and wait. Patience grasshopper!!
Here the risk of fraud seems much much lower than across the China sector, for a number of reasons (they've paid a dividend, went public through an IPO, have several years of clean audits from a Big 4 firm, are buying back stock, low short interest, etc.).