Harbin Bank Co Ltd (SEHK:6138), operating in the financial services industry based in China, saw significant share price volatility over the past couple of months on the SEHK, rising to the highs of HK$2.39 and falling to the lows of HK$2.14. 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 Harbin Bank’s current trading price of HK$2.17 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Harbin Bank’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Harbin Bank
What is Harbin Bank worth?
Good news, investors! Harbin Bank is still a bargain right now. My valuation model shows that the intrinsic value for the stock is HK$8.56, but it is currently trading at HK$2.17 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Harbin Bank’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What does the future of Harbin Bank 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. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Harbin Bank’s earnings over the next few years are expected to increase by 21.82%, 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 Harbin Bank 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on Harbin Bank 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 Harbin Bank. 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.