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Spotlight On China Longyuan Power Group Corporation Limited’s (HKG:916) Fundamentals

Kristin Rankin

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on China Longyuan Power Group Corporation Limited (HKG:916) due to its excellent fundamentals in more than one area. 916 is a company with a an impressive track record of performance, trading at a discount. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on China Longyuan Power Group here.

Good value with proven track record

In the previous year, 916 has ramped up its bottom line by 22.5%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, 916 also outperformed its industry, which delivered a growth of 8.6%. This is an optimistic signal for the future. 916’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if 916’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of HK companies with similar levels of earnings, 916’s share price is trading below the group’s average. This bolsters the proposition that 916’s price is currently discounted.

SEHK:916 Income Statement Export August 29th 18

Next Steps:

For China Longyuan Power Group, I’ve put together three pertinent aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for 916’s future growth? Take a look at our free research report of analyst consensus for 916’s outlook.
  2. Financial Health: Are 916’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 916? 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.