Is it too late to consider buying Shanxi Xinghuacun Fen Wine Factory Co., Ltd.? (SHSE:600809)?

Shanxi Xinghuacun Fen Wine Factory Co., Ltd. (SHSE: 600809) has seen a double-digit share price rise of over 10% over the past two months on the SHSE. The recent rally in stock prices has pushed the company in the right direction, although it is still short of its annual high. Since many analysts cover large-cap stocks, we can expect any price-sensitive announcements to have already been factored into the stock price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Shanxi Xinghuacun Fen Wine FactoryLtd’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Shanxi Xinghuacun Fen Wine FactoryLtd.

What is Shanxi Xinghuacun Fen Wine FactoryLtd worth?

Great news for investors – Shanxi Xinghuacun Fen Wine FactoryLtd is still trading at a fairly cheap price. Our valuation model shows that the stock’s intrinsic value is CN¥337.71, which is higher than the market’s current valuation of the company. This indicates a potential opportunity to buy low. The Shanxi Xinghuacun Fen Wine FactoryLtd share price also appears relatively stable compared to the rest of the market, as indicated by its low beta. If you think the stock price should eventually reach its true value, a low beta might suggest it’s unlikely to get there quickly, and once it does, it might be difficult to fall back down within an attractive buying range.

Can we expect growth from Shanxi Xinghuacun Fen Wine FactoryLtd?

profit and revenue growth
SHSE: 600809 Profit and revenue growth May 29, 2024

Investors looking for growth in their portfolio may want to consider a company’s prospects before buying its shares. Although value investors argue that it’s the intrinsic value relative to the price that matters most, a more compelling investment thesis would be high growth potential at a cheap price. With profits expected to grow 62% over the next two years, the future looks bright for Shanxi Xinghuacun Fen Wine FactoryLtd. It looks like higher cash flow is on the cards for the stock, which should translate into a higher share valuation.

What this means for you

Are you a shareholder? Given that 600809 is currently undervalued, now may be a great time to increase your stock holdings. With an optimistic outlook on the horizon, it appears this growth has yet to be fully factored into the stock price. However, other factors must also be considered, such as financial health, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping your eye on 600809 for a while, now might be the time to get into the stock. Its optimistic future outlook is not yet fully reflected in the current stock price, meaning it’s not too late to buy 600809. But before you make an investment decision, consider other factors such as the strength of its balance sheet, in order to make an informed investment decision.

So if you want to dig deeper into this stock, it’s crucial to consider the risks it faces. By carrying out our analysis, we found that Shanxi Xinghuacun Fen Wine FactoryLtd has 1 warning sign and it would be unwise to ignore it.

If you are no longer interested in Shanxi Xinghuacun Fen Wine FactoryLtd, you can use our free platform to view our list of over 50 other stocks with high growth potential.

The assessment is complex, but we help to simplify it.

Find out if Shanxi Xinghuacun Fen Wine FactoryLtd is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.