In This Article:
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Attractive stocks have exceptional fundamentals. In the case of Kingboard Laminates Holdings Limited (HKG:1888), there’s is a financially-robust company with a an impressive history of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Kingboard Laminates Holdings here.
Flawless balance sheet established dividend payer
1888 has a strong track record of performance. In the previous year, 1888 delivered an impressive double-digit return of 20% Not surprisingly, 1888 outperformed its industry which returned 11%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. 1888’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that 1888 manages its cash and cost levels well, which is a key determinant of the company’s health. 1888 appears to have made good use of debt, producing operating cash levels of 0.4x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
1888’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 1888’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the electronic industry, 1888 is also trading below its peers, relative to earnings generated. This further reaffirms that 1888 is potentially undervalued.
Next Steps:
For Kingboard Laminates Holdings, there are three pertinent aspects you should further research:
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Future Outlook: What are well-informed industry analysts predicting for 1888’s future growth? Take a look at our free research report of analyst consensus for 1888’s outlook.
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Dividend Income vs Capital Gains: Does 1888 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 1888 as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1888? 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.