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What Does Tingyi (Cayman Islands) Holding Corp.'s (HKG:322) Share Price Indicate?

Simply Wall St

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Tingyi (Cayman Islands) Holding Corp. (HKG:322), which is in the food 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 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 Tingyi (Cayman Islands) Holding’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for Tingyi (Cayman Islands) Holding

What is Tingyi (Cayman Islands) Holding worth?

Great news for investors – Tingyi (Cayman Islands) Holding is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is HK$22.98, but it is currently trading at HK$13.08 on the share market, meaning that there is still an opportunity to buy now. However, given that Tingyi (Cayman Islands) Holding’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.

Can we expect growth from Tingyi (Cayman Islands) Holding?

SEHK:322 Past and Future Earnings, June 16th 2019

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 29% over the next couple of years, the future seems bright for Tingyi (Cayman Islands) Holding. 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? Since 322 is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive 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 322 for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 322. 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 buy.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Tingyi (Cayman Islands) Holding. You can find everything you need to know about Tingyi (Cayman Islands) Holding in the latest infographic research report. If you are no longer interested in Tingyi (Cayman Islands) Holding, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.