China BlueChemical Ltd. (HKG:3983), is not the largest company out there, but it received a lot of attention from a substantial price movement on the SEHK over the last few months, increasing to HK$2.99 at one point, and dropping to the lows of HK$2.10. 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 BlueChemical's current trading price of HK$2.10 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 BlueChemical'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 BlueChemical
What is China BlueChemical worth?
The share price seems sensible at the moment according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. In this instance, I've used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock's cash flows. I find that China BlueChemical's ratio of 5.53x is trading slightly below its industry peers' ratio of 5.97x, which means if you buy China BlueChemical today, you'd be paying a reasonable price for it. And if you believe that China BlueChemical should be trading at this level in the long run, then there's not much of an upside to gain over and above other industry peers. Furthermore, it seems like China BlueChemical's share price is quite stable, which means there may be less chances to buy low in the future now that it's priced similarly to industry peers. This is because the stock is less volatile than the wider market given its low beta.
Can we expect growth from China BlueChemical?
SEHK:3983 Earnings and Revenue Growth July 15th 2022
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. With profit expected to grow by 23% over the next couple of years, the future seems bright for China BlueChemical. 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 3983's positive outlook, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at 3983? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio?
Are you a potential investor? If you've been keeping an eye on 3983, now may not be the most advantageous time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for 3983, 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 BlueChemical as a business, it's important to be aware of any risks it's facing. For example - China BlueChemical has 1 warning sign we think you should be aware of.
If you are no longer interested in China BlueChemical, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
中國藍化股份有限公司(HKG：3983)並不是最大的上市公司，但它在過去幾個月受到聯交所大幅價格波動的關注，一度漲至2.99港元，並跌至2.10港元的低點。一些股價波動可以讓投資者有更好的機會買入股票，並有可能以更低的價格買入。一個需要回答的問題是，中國藍化目前2.10港元的交易價格是否反映了小盤股的實際價值？或者，它目前被低估了，為我們提供了買入的機會？讓我們根據最新的財務數據來看看中國藍化的前景和價值，看看是否有任何推動價格變化的催化劑。
查看我們對中國藍化的最新分析
中國藍化的價值是多少？
根據我的市盈率模型，該公司的市盈率與行業平均水平進行了比較，目前股價似乎是合理的。在這種情況下，考慮到沒有足夠的信息來可靠地預測股票的現金流，我使用了市盈率(PE)。我發現，中國藍化的市盈率為5.53倍，略低於行業同行的5.97倍，這意味着如果你今天買入中國藍化，你將支付一個合理的價格。如果你認為，從長遠來看，中國藍化集團的股價應該保持在這個水平，那麼相對於其他行業同行，就不會有太大的上行空間。此外，中國藍化的股價似乎相當穩定，這意味着由於其定價與行業同行相似，未來逢低買入的機會可能會減少。這是因為，鑑於其貝塔係數較低，該股的波動性低於大盤。
我們能指望中國藍化實現增長嗎？
聯交所：3983盈利及收入增長2022年7月15日
尋求投資組合增長的投資者可能希望在購買一家公司的股票之前考慮其前景。儘管價值投資者會爭辯説，相對於價格的內在價值才是最重要的，但一個更有説服力的投資命題是以低廉的價格實現高增長潛力。由於未來幾年利潤預計將增長23%，中國藍化的前景似乎是光明的。看起來，該公司股票有可能出現更高的現金流，這應該會帶來更高的股票估值。
這對你意味着什麼：
你是股東嗎？市場似乎已經消化了3983的積極前景，其股價在行業市盈率附近。然而，還有其他重要的因素我們今天沒有考慮，比如公司的財務實力。這些因素自你上次關注3983點以來是否發生了變化？如果價格波動低於行業市盈率，你會有足夠的信心買入嗎？
你是潛在的投資者嗎？如果你一直在關注3983，現在可能不是買入的最有利時機，因為它的交易價格在行業市盈率附近。然而，積極的前景對3983來説是令人鼓舞的，這意味着它值得更深入地研究其他因素，如其資產負債表的實力，以利用下一次價格下跌。
如果你想更多地瞭解中國藍化的業務，瞭解它面臨的任何風險是很重要的。例如-中國藍化有1個警告標誌我們認為你應該意識到。
如果你對中國藍化不再感興趣，你可以使用我們的免費平臺查看我們的50多隻其他具有高增長潛力的股票。
對這篇文章有什麼反饋嗎？擔心內容嗎？ 保持聯繫直接與我們聯繫。或者，也可以給編輯組發電子郵件，地址是implywallst.com。
本文由Simply Wall St.撰寫，具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論，我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議，也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意，我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。
