3 SEHK Stocks Estimated To Trade At Discounts Up To 46%

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As global markets experience varying trends, with China's equities rising due to central bank support and Hong Kong's Hang Seng Index seeing a decline, investors are increasingly on the lookout for opportunities that might be undervalued. In this context, identifying stocks trading at significant discounts can present potential value, especially when considering companies with strong fundamentals or those poised to benefit from broader economic shifts.

Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong

Name

Current Price

Fair Value (Est)

Discount (Est)

Plover Bay Technologies (SEHK:1523)

HK$5.33

HK$10.13

47.4%

Giant Biogene Holding (SEHK:2367)

HK$51.80

HK$98.25

47.3%

Laopu Gold (SEHK:6181)

HK$166.30

HK$310.81

46.5%

Kuaishou Technology (SEHK:1024)

HK$47.80

HK$88.73

46.1%

MicroPort NeuroScientific (SEHK:2172)

HK$9.72

HK$18.86

48.5%

Yadea Group Holdings (SEHK:1585)

HK$12.54

HK$23.25

46.1%

Shanghai INT Medical Instruments (SEHK:1501)

HK$28.30

HK$55.77

49.3%

Hangzhou SF Intra-city Industrial (SEHK:9699)

HK$10.42

HK$19.50

46.6%

DPC Dash (SEHK:1405)

HK$68.10

HK$132.62

48.6%

Akeso (SEHK:9926)

HK$69.20

HK$128.21

46%

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

Here we highlight a subset of our preferred stocks from the screener.

China Tobacco International (HK)

Overview: China Tobacco International (HK) Company Limited operates in the tobacco industry and has a market capitalization of approximately HK$15.18 billion.

Operations: The company generates revenue from several segments, including the Tobacco Leaf Products Import Business (HK$8.43 billion), Tobacco Leaf Products Export Business (HK$1.82 billion), Cigarettes Export Business (HK$1.52 billion), Brazil Operation Business (HK$884.06 million), and New Tobacco Products Export Business (HK$139.60 million).

Estimated Discount To Fair Value: 26.2%

China Tobacco International (HK) appears undervalued, trading at HK$21.95, below its estimated fair value of HK$29.75. The company reported significant growth in net income for the first half of 2024, reaching HK$643.34 million from HK$456.95 million a year earlier, although debt coverage by operating cash flow remains a concern. Despite moderate revenue growth forecasts of 11.4% annually, its valuation and earnings growth potential present an attractive opportunity amidst Hong Kong's market landscape.