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A Holistic Look At Sunny Optical Technology (Group) Company Limited (HKG:2382)

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 financially-robust company with an impressive track record and an optimistic future outlook. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Sunny Optical Technology (Group) here.

Outstanding track record with exceptional growth potential

Investors in search for stocks with room to flourish should look no further than 2382, with its expected earnings growth of 32%. The optimistic bottom-line growth is supported by an outstanding revenue growth of 65% over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. Over the past year, 2382 has grown its earnings by 49%, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 37% return to shareholders, which is an notable feat for the company.

SEHK:2382 Future Profit December 5th 18

2382’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that 2382 manages its cash and cost levels well, which is an important determinant of the company’s health. 2382 appears to have made good use of debt, producing operating cash levels of 0.45x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

SEHK:2382 Historical Debt December 5th 18

Next Steps:

For Sunny Optical Technology (Group), I’ve compiled three essential aspects you should further research:

  1. 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.
  2. Dividend Income vs Capital Gains: Does 2382 return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from 2382 as an investment.
  3. 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!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.