A Look At Xinyi Solar Holdings Limited’s (HKG:968) Exceptional Fundamentals

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Xinyi Solar Holdings Limited (SEHK:968) due to its excellent fundamentals in more than one area. 968 is a dependable dividend payer with a a strong history of performance, trading at a discount. 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 Xinyi Solar Holdings here.

Solid track record, good value and pays a dividend

968 delivered a satisfying double-digit returns of 21.61% in the most recent year Not surprisingly, 968 outperformed its industry which returned 7.96%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. 968’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of 968’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the semiconductor industry, 968 is also trading below its peers, relative to earnings generated. This supports the theory that 968 is potentially underpriced.

SEHK:968 Income Statement Jun 19th 18

968 is considered one of the top dividend payers in the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.

SEHK:968 Historical Dividend Yield Jun 19th 18

Next Steps:

For Xinyi Solar Holdings, I’ve put together three fundamental factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for 968’s future growth? Take a look at our free research report of analyst consensus for 968’s outlook.

2. Financial Health: Is 968’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 968? 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 pass 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.