Is It Time To Consider Buying Contemporary Amperex Technology Co., Limited (SZSE:300750)?

Today we're going to take a look at the well-established Contemporary Amperex Technology Co., Limited (SZSE:300750). The company's stock received a lot of attention from a substantial price increase on the SZSE over the last few months. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today we will analyse the most recent data on Contemporary Amperex Technology’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Contemporary Amperex Technology

Is Contemporary Amperex Technology Still Cheap?

Great news for investors – Contemporary Amperex Technology is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is CN¥391.89, but it is currently trading at CN¥273 on the share market, meaning that there is still an opportunity to buy now. However, given that Contemporary Amperex Technology’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Contemporary Amperex Technology?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 57% over the next couple of years, the future seems bright for Contemporary Amperex Technology. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? Since 300750 is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on 300750 for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 300750. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

If you want to dive deeper into Contemporary Amperex Technology, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 1 warning sign for Contemporary Amperex Technology you should know about.

If you are no longer interested in Contemporary Amperex Technology, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.