Should You Investigate LONGi Green Energy Technology Co., Ltd. (SHSE:601012) At CN¥18.30?

Today we're going to take a look at the well-established LONGi Green Energy Technology Co., Ltd. (SHSE:601012). The company's stock received a lot of attention from a substantial price movement on the SHSE over the last few months, increasing to CN¥22.32 at one point, and dropping to the lows of CN¥18.20. 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 LONGi Green Energy Technology's current trading price of CN¥18.30 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at LONGi Green Energy Technology’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for LONGi Green Energy Technology

What Is LONGi Green Energy Technology Worth?

According to our valuation model, LONGi Green Energy Technology seems to be fairly priced at around 4.32% above our intrinsic value, which means if you buy LONGi Green Energy Technology today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth CN¥17.54, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, LONGi Green Energy Technology’s low beta implies that the stock is less volatile than the wider market.

What does the future of LONGi Green Energy Technology look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to more than double over the next couple of years, the future seems bright for LONGi Green Energy 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? 601012’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 financial strength of the company. 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 601012, 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.

If you want to dive deeper into LONGi Green Energy Technology, you'd also look into what risks it is currently facing. Be aware that LONGi Green Energy Technology is showing 3 warning signs in our investment analysis and 1 of those doesn't sit too well with us...

If you are no longer interested in LONGi Green Energy 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.