Ningbo Orient Wires & Cables Co.,Ltd. (603606.SS) $ 603606.SS #China #Stocks #Electrial #Components Undervalued
No. 1 High Voltage Submarine Power Cable in China
Ningbo Orient Wires & Cables
Ticker: 603606.SS
Price: CNY14.12
Recommendation: Buy
Sector Outlook
The global high voltage cables market size was valued at $14.6 billion in 2019, and is projected to reach $23.4 billion by 2027, registering a CAGR of 6.0% from 2020 to 2027. High voltage cable (HVC) are cables used for electric power transmission at high voltages over long distances.
In general, there are three types of installation of HVCs: overhead, underground, and submarine. Underground cables are preferable due to their application in various industries such as power utilities, oil & gas, and mining. High voltage cable market growth is driven by growing infrastructure.
Numerous huge infrastructure projects have started in the past few years in developing countries such as China, Japan, India, and Dubai. These infrastructure projects include commercial and residential buildings such as offices, shopping malls, apartments, theaters, and parks.
These projects require a large number of HVCs to deliver power, which supplements the growth of the market. Government initiatives and investments have also fueled the growth of the market.
Countries across the world are creating off shore power projects to fulfil the increased demand of electricity.
The Japanese government is constructing a floating wind farm, twelve miles away from sea cost and is expected to install 140 floating wind turbines by 2020. In addition, the China Ship Building Industry Corporation is constructing floating nuclear power plant in South China Sea and is expected to be completed by 2018.
These projects ensure increase in demand forall three types of HVCs during the forecast period as they are located in oceans and river basins.
Business Summary
NINGBO ORIENT WIRES & CABLES CO.,LTD. is a China-based company principally engaged in the research, development, production and sale of various wires and cables, as well as the provision of related services.
The Company’s main products include submarine cables, power cables, spare wires and cables for electrical equipment and overhead wires.
The Company distributes its products mainly in domestic market.
Shayne Heffernan Trade Idea
“Our current price target of Ningbo Orient Wires & Cables will come in around CNY16.89 giving the stock a price increase of +19.20%.”
Price Performance
Relative Valuation
Technical Indicators
Overall, the bias in prices is: Upwards.
The projected upper bound is: 15.30.
The projected lower bound is: 13.19.
The projected closing price is: 14.25.
Candlesticks
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support.
Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
Momentum Indicators
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 54.0540. This is not an overbought or oversold reading. The last signal was a sell 2 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 58.11. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 41 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 146.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 period(s) ago.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 3 period(s) ago.
Rex Takasugi – TD Profile
ORIENT WIR ORD A closed up 0.700 at 14.230. Volume was 33% below average (neutral) and Bollinger Bands were 54% narrower than normal.
Open High Low Close Volume 13.620 14.290 13.620 14.230 10,803,261
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 13.62 13.86 12.13 Volatility: 41 48 52 Volume: 9,484,467 11,762,406 12,709,780
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
ORIENT WIR ORD A is currently 17.3% above its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods.
Our volume indicators reflect volume flowing into and out of 603606.SS at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on 603606.SS and have had this outlook for the last 23 periods.
Ningbo Orient Wires & Cables Co.,Ltd. (603606.SS) Undervalued added by HEFFX on
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