Hongfa Technology's positive outlook is already reflected in its fair value share trading. The encouraging outlook suggests further examination of factors like balance sheet strength.

Investor expectations of limited future growth has led to a lower P/E ratio. The projected growth rate, lower than the market average, is likely to continue suppressing the share price.

The market seems to have become relatively pessimistic about the company despite the considerable EPS growth rate over the past years. The recent sell-off could represent an investment opportunity given the signs of long-term growth.