A Look At China Chengtong Development Group Limited’s (HKG:217) Exceptional Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of China Chengtong Development Group Limited (HKG:217), it is a company with great financial health as well as a an impressive track record of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on China Chengtong Development Group here.

Excellent balance sheet with proven track record

Over the past few years, 217 has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, 217 also outperformed its industry, which delivered a growth of 27%. This paints a buoyant picture for the company. 217’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that 217 manages its cash and cost levels well, which is a key determinant of the company’s health. 217’s debt-to-equity ratio stands at 9.5%, which means its debt level is acceptable. This means that 217’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt.

SEHK:217 Income Statement, April 11th 2019
SEHK:217 Income Statement, April 11th 2019

Next Steps:

For China Chengtong Development Group, I’ve put together three important factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for 217’s future growth? Take a look at our free research report of analyst consensus for 217’s outlook.
  2. Valuation: What is 217 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 217 is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 217? 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.