Is Now An Opportune Moment To Examine China Resources Building Materials Technology Holdings Limited (HKG:1313)?

While China Resources Building Materials Technology Holdings Limited (HKG:1313) might not have the largest market cap around , it saw a decent share price growth of 13% on the SEHK over the last few months. 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, could the stock still be trading at a relatively cheap price? 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.

Check out our latest analysis for China Resources Building Materials Technology Holdings

What Is China Resources Building Materials Technology Holdings Worth?

According to our valuation model, China Resources Building Materials Technology Holdings seems to be fairly priced at around 19% below our intrinsic value, which means if you buy China Resources Building Materials Technology Holdings today, you’d be paying a reasonable price for it. And if you believe the company’s true value is HK$1.67, then there’s not much of an upside to gain from mispricing. Furthermore, China Resources Building Materials Technology Holdings’s low beta implies that the stock is less volatile than the wider market.

What kind of growth will China Resources Building Materials Technology Holdings generate?

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. With profit expected to more than double over the next couple of years, the future seems bright for China Resources Building Materials Technology 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? 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 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 1313, now may not be the most optimal 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 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 China Resources Building Materials Technology Holdings has 3 warning signs and it would be unwise to ignore them.

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.