Hi Sun Technology (China) Limited (HKG:818) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of 818, it is a company with robust financial health as well as a buoyant growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Hi Sun Technology (China) here.
Excellent balance sheet with reasonable growth potential
818 is an attractive stock for growth-seeking investors, with an expected earnings growth of 26% in the upcoming year. The optimistic bottom-line growth is supported by an outstanding revenue growth of 54% over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. 818 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. 818’s has produced operating cash levels of 68.22x total debt over the past year, which implies that 818’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Hi Sun Technology (China), I’ve compiled three fundamental factors you should further research:
- Historical Performance: What has 818’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.
- Valuation: What is 818 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 818 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 818? 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 email@example.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.