Is It Too Late To Consider Buying China Jinmao Holdings Group Limited (HKG:817)?

While China Jinmao Holdings Group Limited (HKG:817) might not be the most widely known stock at the moment, it saw a decent share price growth in the teens level on the SEHK over the last few months. 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, what if the stock is still a bargain? Today I will analyse the most recent data on China Jinmao Holdings Group’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for China Jinmao Holdings Group

Is China Jinmao Holdings Group Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 6.37% above my intrinsic value, which means if you buy China Jinmao Holdings Group today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is HK$1.15, there’s only an insignificant downside when the price falls to its real value. In addition to this, China Jinmao Holdings Group has a low beta, which suggests its share price is less volatile than the wider market.

What does the future of China Jinmao Holdings Group 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. With profit expected to more than double over the next couple of years, the future seems bright for China Jinmao Holdings 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? 817’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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on 817, 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. To help with this, we've discovered 5 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in China Jinmao Holdings Group.

If you are no longer interested in China Jinmao Holdings 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.