3 SEHK Stocks Estimated To Be Trading Below Intrinsic Value
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In recent weeks, the Hong Kong market has experienced a mix of economic signals, with inflation data and trade performance drawing significant attention. Despite these fluctuations, opportunities still exist for discerning investors to find stocks trading below their intrinsic value. Identifying undervalued stocks can be particularly rewarding in such an environment, as these investments often have strong fundamentals that are temporarily overlooked by the broader market.
Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Bosideng International Holdings (SEHK:3998) | HK$3.65 | HK$6.75 | 45.9% |
| Shanghai INT Medical Instruments (SEHK:1501) | HK$28.25 | HK$56.14 | 49.7% |
| Tencent Holdings (SEHK:700) | HK$388.80 | HK$768.95 | 49.4% |
| BYD (SEHK:1211) | HK$245.00 | HK$464.48 | 47.3% |
| Hangzhou SF Intra-city Industrial (SEHK:9699) | HK$10.98 | HK$19.91 | 44.9% |
| Jiangxi Rimag Group (SEHK:2522) | HK$26.25 | HK$49.42 | 46.9% |
| Akeso (SEHK:9926) | HK$63.95 | HK$126.54 | 49.5% |
| Innovent Biologics (SEHK:1801) | HK$42.15 | HK$80.00 | 47.3% |
| Digital China Holdings (SEHK:861) | HK$3.24 | HK$6.10 | 46.9% |
| Jinke Smart Services Group (SEHK:9666) | HK$7.37 | HK$13.77 | 46.5% |
We're going to check out a few of the best picks from our screener tool.
XD
Overview: XD Inc. (SEHK:2400) is an investment holding company that develops, publishes, operates, and distributes mobile and web games in Mainland China and internationally, with a market cap of HK$9.01 billion.
Operations: The company's revenue segments include CN￥2.43 billion from Game and CN￥1.43 billion from the TapTap Platform.
Estimated Discount To Fair Value: 38.7%
XD Inc. recently reported a significant increase in net income for the first half of 2024, reaching CNY 205.1 million from CNY 90.19 million a year ago, driven by strong sales growth to CNY 2.22 billion. The stock trades at HK$18.7, well below its estimated fair value of HK$30.52, indicating it is undervalued based on cash flows despite past shareholder dilution and high marketing expenses impacting profitability improvements from new games and services revenue growth.
Jiangxi Rimag Group
Overview: Jiangxi Rimag Group Co., Ltd. operates medical imaging centers in China and has a market cap of HK$9.35 billion.
Operations: The company's revenue segment includes CN￥812.85 million from Medical Labs & Research.