Stock Analysis

Is It Time To Consider Buying China Yongda Automobiles Services Holdings Limited (HKG:3669)?

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SEHK:3669
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While China Yongda Automobiles Services Holdings Limited (HKG:3669) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price increase on the SEHK over the last few months. 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 Yongda Automobiles Services Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for China Yongda Automobiles Services Holdings

Is China Yongda Automobiles Services Holdings Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 2.9% below my intrinsic value, which means if you buy China Yongda Automobiles Services Holdings today, you’d be paying a fair price for it. And if you believe the company’s true value is HK$4.69, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that China Yongda Automobiles Services Holdings’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will China Yongda Automobiles Services Holdings generate?

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SEHK:3669 Earnings and Revenue Growth November 30th 2022

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 grow by 34% over the next couple of years, the future seems bright for China Yongda Automobiles Services 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? 3669’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 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 3669, 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into China Yongda Automobiles Services Holdings, you'd also look into what risks it is currently facing. Case in point: We've spotted 1 warning sign for China Yongda Automobiles Services Holdings you should be aware of.

If you are no longer interested in China Yongda Automobiles Services 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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Find out whether China Yongda Automobiles Services Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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