China Resources Medical Holdings Company Limited (HKG:1515), which is in the healthcare business, and is based in China, saw a decent share price growth in the teens level on the SEHK over the last few months. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Today I will analyse the most recent data on China Resources Medical Holdings’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for China Resources Medical Holdings

What is China Resources Medical Holdings worth?

Good news, investors! China Resources Medical Holdings is still a bargain right now. According to my valuation, the intrinsic value for the stock is HK$10.97, but it is currently trading at HK$5.73 on the share market, meaning that there is still an opportunity to buy now. However, given that China Resources Medical 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 another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of China Resources Medical Holdings look like?

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. China Resources Medical Holdings’s earnings over the next few years are expected to increase by 65%, 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? Since 1515 is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on 1515 for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 1515. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.