Should You Investigate China Merchants Port Holdings Company Limited (HKG:144) At HK$11.52?

China Merchants Port Holdings Company Limited (HKG:144), is not the largest company out there, but it saw a decent share price growth of 16% on the SEHK over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. 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 we will analyse the most recent data on China Merchants Port Holdings’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for China Merchants Port Holdings

What Is China Merchants Port Holdings Worth?

According to our valuation model, China Merchants Port Holdings seems to be fairly priced at around 5.33% above our intrinsic value, which means if you buy China Merchants Port Holdings today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth HK$10.94, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, China Merchants Port Holdings’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of China Merchants Port Holdings look like?

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 a double-digit 12% over the next couple of years, the outlook is positive for China Merchants Port 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? It seems like the market has already priced in 144’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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on 144, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect 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.

If you want to dive deeper into China Merchants Port Holdings, you'd also look into what risks it is currently facing. While conducting our analysis, we found that China Merchants Port Holdings has 1 warning sign and it would be unwise to ignore it.

If you are no longer interested in China Merchants Port 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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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