SEHK's Estimated Value Opportunities For September 2024
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As global markets continue to navigate mixed economic signals and inflation concerns, the Hong Kong market has shown resilience with the Hang Seng Index gaining 2.14% recently. This environment presents potential opportunities for investors seeking undervalued stocks that may offer significant value in September 2024. In such a market, identifying good stocks often involves looking for companies with strong fundamentals that are trading below their intrinsic value, particularly in sectors poised to benefit from current economic trends.
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$3.74 | HK$6.76 | 44.6% |
| CIMC Enric Holdings (SEHK:3899) | HK$6.05 | HK$10.48 | 42.3% |
| Zhaojin Mining Industry (SEHK:1818) | HK$11.90 | HK$21.37 | 44.3% |
| WuXi XDC Cayman (SEHK:2268) | HK$20.15 | HK$39.16 | 48.5% |
| Pacific Textiles Holdings (SEHK:1382) | HK$1.47 | HK$2.85 | 48.4% |
| Hangzhou SF Intra-city Industrial (SEHK:9699) | HK$11.00 | HK$19.83 | 44.5% |
| Innovent Biologics (SEHK:1801) | HK$42.95 | HK$80.12 | 46.4% |
| United Company RUSAL International (SEHK:486) | HK$2.34 | HK$4.25 | 44.9% |
| Vobile Group (SEHK:3738) | HK$1.51 | HK$2.63 | 42.6% |
| DPC Dash (SEHK:1405) | HK$68.65 | HK$134.81 | 49.1% |
Let's uncover some gems from our specialized screener.
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$8.82 billion.
Operations: The company's revenue segments are comprised of CN￥2.43 billion from games and CN￥1.43 billion from the TapTap platform.
Estimated Discount To Fair Value: 40%
XD Inc. reported strong earnings for the first half of 2024, with net income rising to CNY 205.1 million from CNY 90.19 million a year ago, driven by new game launches and increased information services revenue from TapTap PRC. Trading at HK$18.68, it is significantly below its estimated fair value of HK$31.11, making it highly undervalued based on cash flows despite higher marketing expenses and slower-than-20% revenue growth forecasts.
Vobile Group
Overview: Vobile Group Limited, with a market cap of HK$3.41 billion, provides software as a service for digital content assets protection and transaction across the United States, Japan, Mainland China, and internationally.