Should You Think About Buying Haitong International Securities Group Limited (HKG:665) Now?
Haitong International Securities Group Limited (HKG:665), which is in the capital markets business, and is based in Hong Kong, received a lot of attention from a substantial price movement on the SEHK over the last few months, increasing to HK$3.85 at one point, and dropping to the lows of HK$2.49. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Haitong International Securities Group’s current trading price of HK$2.61 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 Haitong International Securities Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Haitong International Securities Group
What is Haitong International Securities Group worth?
Great news for investors – Haitong International Securities Group is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is HK$4.14, but it is currently trading at HK$2.61 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Haitong International Securities Group’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Can we expect growth from Haitong International Securities Group?
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. However, with a relatively muted profit growth of 7.1% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Haitong International Securities Group, at least in the short term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since 665 is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on 665 for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 665. 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Haitong International Securities Group. You can find everything you need to know about Haitong International Securities Group in the latest infographic research report. If you are no longer interested in Haitong International Securities Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
