At CN¥12.48, Is It Time To Put Centre Testing International Group Co. Ltd. (SZSE:300012) On Your Watch List?

While Centre Testing International Group Co. Ltd. (SZSE:300012) might not have the largest market cap around , it saw significant share price movement during recent months on the SZSE, rising to highs of CN¥13.64 and falling to the lows of CN¥11.54. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Centre Testing International Group's current trading price of CN¥12.48 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Centre Testing International Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Centre Testing International Group

Is Centre Testing International Group Still Cheap?

According to our valuation model, Centre Testing International Group seems to be fairly priced at around 19.95% above our intrinsic value, which means if you buy Centre Testing International Group today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth CN¥10.40, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Centre Testing International Group’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of Centre Testing International Group look like?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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 38% over the next couple of years, the future seems bright for Centre Testing International Group. 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? 300012’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on 300012, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

It can be quite valuable to consider what analysts expect for Centre Testing International Group from their most recent forecasts. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in Centre Testing International Group, 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.