Should You Think About Buying Hysan Development Company Limited (HKG:14) Now?

While Hysan Development Company Limited (HKG:14) might not have the largest market cap around , it saw significant share price movement during recent months on the SEHK, rising to highs of HK$13.06 and falling to the lows of HK$11.06. 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 Hysan Development's current trading price of HK$11.66 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 Hysan Development’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Hysan Development

Is Hysan Development Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 14.52% above our intrinsic value, which means if you buy Hysan Development today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is HK$10.18, there’s only an insignificant downside when the price falls to its real value. In addition to this, Hysan Development has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from Hysan Development?

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. However, with a relatively muted revenue growth of 1.5% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Hysan Development, at least in the short term.

What This Means For You

Are you a shareholder? 14’s 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 14, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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 Hysan Development as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 1 warning sign for Hysan Development and we think they deserve your attention.

If you are no longer interested in Hysan Development, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com