This consumer stock will explore (Xiabuxiabu)For those who do not live in China or have never been to China, you probably dont know about this company.
HKEX:520 is actually the largest chain of hotpot restaurant in China.
In their recent pre-release of annual result, they have declared the earnings has decliend by 90%...but yet their stock price didn't fall on that day...on the contrary it was a green day for them because the downfall in profitability was due to Covid..meaning the current price is actually a bottom line for their stock.
If you look at their price action, apparently it has consolidated at around 17.5 a share and its gradually gaining momentum to break-up the downward trend line and once it does, i m sure it would spike towards the 20 dollar mark.
With the cut loss price set at the recent low at 15-ish, there is a great 2:1 risk reward ratio for an entry to this stock.
Remember that China is almost totally recovered from the pandemic and its expecting to achieve 6% GDP growth this year. The next annual report of Xiabuxiabu could only be better so as its share price
