3 SEHK Stocks Estimated To Be Up To 49.7% Below Intrinsic Value

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In recent weeks, the Hong Kong market has faced a challenging environment, with the Hang Seng Index declining by 1.03% amid global economic uncertainties and stimulus measures from China. Despite these headwinds, opportunities may exist for investors seeking undervalued stocks that are trading below their intrinsic value, offering potential for growth as market conditions stabilize.

Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong

Name

Current Price

Fair Value (Est)

Discount (Est)

BYD Electronic (International) (SEHK:285)

HK$34.30

HK$68.13

49.7%

Giant Biogene Holding (SEHK:2367)

HK$52.95

HK$98.97

46.5%

Kuaishou Technology (SEHK:1024)

HK$45.90

HK$88.36

48.1%

MicroPort NeuroScientific (SEHK:2172)

HK$9.79

HK$18.82

48%

Shanghai INT Medical Instruments (SEHK:1501)

HK$29.00

HK$55.64

47.9%

Hangzhou SF Intra-city Industrial (SEHK:9699)

HK$10.14

HK$19.45

47.9%

Semiconductor Manufacturing International (SEHK:981)

HK$28.80

HK$54.38

47%

DPC Dash (SEHK:1405)

HK$65.50

HK$130.67

49.9%

Digital China Holdings (SEHK:861)

HK$2.88

HK$5.73

49.7%

Sands China (SEHK:1928)

HK$19.86

HK$38.69

48.7%

Click here to see the full list of 40 stocks from our Undervalued SEHK Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

Plover Bay Technologies

Overview: Plover Bay Technologies Limited is an investment holding company that designs, develops, and markets software-defined wide area network routers, with a market capitalization of HK$6.01 billion.

Operations: The company's revenue segments include $15.19 million from sales of SD-WAN routers for fixed first connectivity, $59.87 million from sales of SD-WAN routers for mobile first connectivity, and $31.86 million from software licenses and warranty and support services.

Estimated Discount To Fair Value: 46.1%

Plover Bay Technologies is trading at HK$5.46, significantly below its estimated fair value of HK$10.14, indicating undervaluation based on cash flows. With earnings growth forecasted at 17.3% annually, outpacing the Hong Kong market's 12.2%, and a high return on equity projected in three years, the company shows strong financial prospects despite an unstable dividend track record. Recent executive changes may enhance board diversity and expertise in legal affairs.

SEHK:1523 Discounted Cash Flow as at Oct 2024
SEHK:1523 Discounted Cash Flow as at Oct 2024

Sands China

Overview: Sands China Ltd. develops, owns, and operates integrated resorts and casinos in Macao with a market cap of HK$160.73 billion.