China Lesso Group Holdings Limited (HKG:2128), is not the largest company out there, but it led the SEHK gainers with a relatively large price hike in the past couple of weeks. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. But what if there is still an opportunity to buy? Let's examine China Lesso Group Holdings's valuation and outlook in more detail to determine if there's still a bargain opportunity.

Check out our latest analysis for China Lesso Group Holdings

What is China Lesso Group Holdings worth?

The stock seems fairly valued at the moment according to my valuation model. It's trading around 0.2% below my intrinsic value, which means if you buy China Lesso Group Holdings today, you'd be paying a fair price for it. And if you believe that the stock is really worth HK$11.52, then there's not much of an upside to gain from mispricing. In addition to this, China Lesso Group Holdings has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from China Lesso Group Holdings?

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. 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. With profit expected to grow by 61% over the next couple of years, the future seems bright for China Lesso Group 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? 2128'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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you've been keeping an eye on 2128, now may not be the most advantageous 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.

If you'd like to know more about China Lesso Group Holdings as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 4 warning signs for China Lesso Group Holdings you should know about.

If you are no longer interested in China Lesso Group 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.