Why Shanghai MicroPort MedBot (Group) Co., Ltd. (HKG:2252) Could Be Worth Watching

Shanghai MicroPort MedBot (Group) Co., Ltd. (HKG:2252), might not be a large cap stock, but it saw a significant share price rise of 46% in the past couple of months on the SEHK. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Today we will analyse the most recent data on Shanghai MicroPort MedBot (Group)’s outlook and valuation to see if the opportunity still exists.

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Is Shanghai MicroPort MedBot (Group) Still Cheap?

Shanghai MicroPort MedBot (Group) appears to be overvalued by 38% at the moment, based on our discounted cash flow valuation. The stock is currently priced at HK$27.10 on the market compared to our intrinsic value of HK$19.61. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Given that Shanghai MicroPort MedBot (Group)’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

View our latest analysis for Shanghai MicroPort MedBot (Group)

Can we expect growth from Shanghai MicroPort MedBot (Group)?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 grow by 60% over the next year, the near-term future seems bright for Shanghai MicroPort MedBot (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? 2252’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe 2252 should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on 2252 for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for 2252, which means it’s worth diving deeper into other factors 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. Case in point: We've spotted 1 warning sign for Shanghai MicroPort MedBot (Group) you should be aware of.

If you are no longer interested in Shanghai MicroPort MedBot (Group), 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.