Should You Investigate Jiangsu Hoperun Software Co., Ltd. (SZSE:300339) At CN¥60.46?

Jiangsu Hoperun Software Co., Ltd. (SZSE:300339), is not the largest company out there, but it received a lot of attention from a substantial price increase on the SZSE over the last few months. The company is now trading at yearly-high levels following the recent surge in its share price. As a well-established company, which tends to be well-covered by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today we will analyse the most recent data on Jiangsu Hoperun Software’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Jiangsu Hoperun Software

What Is Jiangsu Hoperun Software Worth?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 15.56% above our intrinsic value, which means if you buy Jiangsu Hoperun Software today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is CN¥52.32, there’s only an insignificant downside when the price falls to its real value. Furthermore, Jiangsu Hoperun Software’s low beta implies that the stock is less volatile than the wider market.

What does the future of Jiangsu Hoperun Software 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. 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. Jiangsu Hoperun Software's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in 300339’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 financial strength of the company. 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 tabs on 300339, 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've found that Jiangsu Hoperun Software has 2 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

If you are no longer interested in Jiangsu Hoperun Software, 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.