At HK$1.96, Is It Time To Put China Resources Building Materials Technology Holdings Limited (HKG:1313) On Your Watch List?

While China Resources Building Materials Technology Holdings Limited (HKG:1313) might not have the largest market cap around , it saw a significant share price rise of 25% 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 stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine China Resources Building Materials Technology Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

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Is China Resources Building Materials Technology Holdings Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 19.41% above our intrinsic value, which means if you buy China Resources Building Materials Technology Holdings today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is HK$1.64, there’s only an insignificant downside when the price falls to its real value. Furthermore, China Resources Building Materials Technology Holdings’s low beta implies that the stock is less volatile than the wider market.

See our latest analysis for China Resources Building Materials Technology Holdings

What does the future of China Resources Building Materials Technology Holdings 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. China Resources Building Materials Technology Holdings' 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? 1313’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 1313, now may not be the most optimal 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.

If you'd like to know more about China Resources Building Materials Technology Holdings as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 1 warning sign for China Resources Building Materials Technology Holdings you should know about.

If you are no longer interested in China Resources Building Materials Technology 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.