These Factors Make China Longyuan Power Group Corporation Limited (HKG:916) An Interesting Investment

January 09, 2019
  •  Updated
August 18, 2022
SEHK:916
Source: Shutterstock

Attractive stocks have exceptional fundamentals. In the case of China Longyuan Power Group Corporation Limited (HKG:916), there's is a company with a a strong track record of performance, trading at a discount. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on China Longyuan Power Group here.

Undervalued with proven track record

In the previous year, 916 has ramped up its bottom line by 37%, 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 13%. This is an notable feat for the company. 916 is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. 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. Compared to the rest of the renewable energy industry, 916 is also trading below its peers, relative to earnings generated. This supports the theory that 916 is potentially underpriced.

SEHK:916 Income Statement Export January 9th 19
SEHK:916 Income Statement Export January 9th 19

Next Steps:

For China Longyuan Power Group, I've compiled three key aspects you should further research:

  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.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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