When Should You Buy China Jinmao Holdings Group Limited (HKG:817)?

China Jinmao Holdings Group Limited (HKG:817), is not the largest company out there, but it saw significant share price movement during recent months on the SEHK, rising to highs of HK$1.23 and falling to the lows of HK$0.93. 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 China Jinmao Holdings Group's current trading price of HK$0.94 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 China Jinmao Holdings Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for China Jinmao Holdings Group

What's The Opportunity In China Jinmao Holdings Group?

Great news for investors – China Jinmao Holdings Group is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is HK$1.27, but it is currently trading at HK$0.94 on the share market, meaning that there is still an opportunity to buy now. China Jinmao Holdings Group’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

Can we expect growth from China Jinmao Holdings 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. China Jinmao Holdings Group's revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since 817 is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on 817 for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 817. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Every company has risks, and we've spotted 3 warning signs for China Jinmao Holdings Group (of which 1 is concerning!) you should know about.

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.