Is There Now An Opportunity In Chongqing Baiya Sanitary Products Co., Ltd. (SZSE:003006)?

While Chongqing Baiya Sanitary Products Co., Ltd. (SZSE:003006) might not have the largest market cap around , it saw a decent share price growth of 16% on the SZSE over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today we will analyse the most recent data on Chongqing Baiya Sanitary Products’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Chongqing Baiya Sanitary Products

What Is Chongqing Baiya Sanitary Products Worth?

Great news for investors – Chongqing Baiya Sanitary Products is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is CN¥32.06, but it is currently trading at CN¥24.86 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Chongqing Baiya Sanitary Products’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from Chongqing Baiya Sanitary Products?

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. Chongqing Baiya Sanitary Products' earnings over the next few years are expected to increase by 70%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since 003006 is currently undervalued, it may be a great time to accumulate more of 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 003006 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 003006. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. At Simply Wall St, we found 1 warning sign for Chongqing Baiya Sanitary Products and we think they deserve your attention.

If you are no longer interested in Chongqing Baiya Sanitary Products, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.