Is Now An Opportune Moment To Examine BlueFocus Intelligent Communications Group Co., Ltd. (SZSE:300058)?

While BlueFocus Intelligent Communications Group Co., Ltd. (SZSE:300058) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the SZSE. While good news for shareholders, the company has traded much higher in the past year. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine BlueFocus Intelligent Communications Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for BlueFocus Intelligent Communications Group

Is BlueFocus Intelligent Communications Group Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 8.28% above our intrinsic value, which means if you buy BlueFocus Intelligent Communications Group today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is CN¥5.07, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, BlueFocus Intelligent Communications Group’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will BlueFocus Intelligent Communications Group generate?

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 more than double over the next couple of years, the future seems bright for BlueFocus Intelligent Communications 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? It seems like the market has already priced in 300058’s positive outlook, 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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on 300058, now may not be the most advantageous 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.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in BlueFocus Intelligent Communications Group, 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.