When Should You Buy AviChina Industry & Technology Company Limited (HKG:2357)?

AviChina Industry & Technology Company Limited (HKG:2357), is not the largest company out there, but it received a lot of attention from a substantial price increase on the SEHK over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a mid-cap 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 take a look at AviChina Industry & Technology’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for AviChina Industry & Technology

What's The Opportunity In AviChina Industry & Technology?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 5.6% below our intrinsic value, which means if you buy AviChina Industry & Technology today, you’d be paying a fair price for it. And if you believe that the stock is really worth HK$4.59, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, AviChina Industry & Technology’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of AviChina Industry & Technology 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. AviChina Industry & Technology's earnings over the next few years are expected to increase by 65%, 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? 2357’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 tabs on 2357, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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 AviChina Industry & Technology from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in AviChina Industry & 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.