Should You Think About Buying Sunny Optical Technology (Group) Company Limited (HKG:2382) Now?

Let's talk about the popular Sunny Optical Technology (Group) Company Limited (HKG:2382). The company's shares led the SEHK gainers with a relatively large price hike in the past couple of weeks. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. With many analysts covering the large-cap 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 take a look at Sunny Optical Technology (Group)’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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What Is Sunny Optical Technology (Group) Worth?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 8.5% below our intrinsic value, which means if you buy Sunny Optical Technology (Group) today, you’d be paying a reasonable price for it. And if you believe the company’s true value is HK$84.88, then there’s not much of an upside to gain from mispricing. What's more, Sunny Optical Technology (Group)’s share price may be more stable over time (relative to the market), as indicated by its low beta.

See our latest analysis for Sunny Optical Technology (Group)

What kind of growth will Sunny Optical Technology (Group) generate?

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. Sunny Optical Technology (Group)'s earnings over the next few years are expected to increase by 78%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in 2382’s positive outlook, 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 an eye on 2382, 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.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in Sunny Optical Technology (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.