What Is CIMC Enric Holdings Limited's (HKG:3899) Share Price Doing?

CIMC Enric Holdings Limited (HKG:3899), is not the largest company out there, but it saw significant share price movement during recent months on the SEHK, rising to highs of HK$8.33 and falling to the lows of HK$6.69. 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 CIMC Enric Holdings' current trading price of HK$6.69 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at CIMC Enric Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for CIMC Enric Holdings

What's The Opportunity In CIMC Enric Holdings?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 7.55% above our intrinsic value, which means if you buy CIMC Enric Holdings today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is HK$6.22, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, CIMC Enric Holdings has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from CIMC Enric Holdings?

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 grow by 64% over the next couple of years, the future seems bright for CIMC Enric Holdings. 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 3899’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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on 3899, 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. While conducting our analysis, we found that CIMC Enric Holdings has 1 warning sign and it would be unwise to ignore this.

If you are no longer interested in CIMC Enric Holdings, 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.