3 SEHK Stocks Estimated To Be Trading Below Intrinsic Value By Up To 40.9%
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In recent weeks, the Hong Kong market has seen fluctuations, with the Hang Seng Index experiencing a decline of 2.11% as concerns over deflationary pressures in China persist. Amid these conditions, investors are increasingly on the lookout for stocks that may be undervalued relative to their intrinsic worth, presenting potential opportunities for those who can identify companies trading below their estimated value by significant margins.
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$34.50 | HK$63.78 | 45.9% |
| Giant Biogene Holding (SEHK:2367) | HK$50.70 | HK$98.23 | 48.4% |
| Kuaishou Technology (SEHK:1024) | HK$46.25 | HK$88.50 | 47.7% |
| MicroPort NeuroScientific (SEHK:2172) | HK$9.72 | HK$18.83 | 48.4% |
| Yadea Group Holdings (SEHK:1585) | HK$12.32 | HK$23.21 | 46.9% |
| Shanghai INT Medical Instruments (SEHK:1501) | HK$28.50 | HK$55.69 | 48.8% |
| Hangzhou SF Intra-city Industrial (SEHK:9699) | HK$10.24 | HK$19.48 | 47.4% |
| Semiconductor Manufacturing International (SEHK:981) | HK$29.60 | HK$54.85 | 46% |
| CSC Financial (SEHK:6066) | HK$9.36 | HK$17.19 | 45.5% |
| Akeso (SEHK:9926) | HK$67.00 | HK$127.77 | 47.6% |
Let's review some notable picks from our screened stocks.
Hua Hong Semiconductor
Overview: Hua Hong Semiconductor Limited is an investment holding company that manufactures and sells semiconductor products, with a market capitalization of HK$50.34 billion.
Operations: Revenue segments for Hua Hong Semiconductor Limited include manufacturing and selling semiconductor products.
Estimated Discount To Fair Value: 40.9%
Hua Hong Semiconductor is trading at HK$23.3, significantly below its estimated fair value of HK$39.44, suggesting it may be undervalued based on cash flows. Despite a drop in second-quarter sales to US$478.52 million from US$631.38 million last year and lower profit margins, earnings are expected to grow significantly by 33.33% annually over the next three years, outpacing the Hong Kong market's growth rate of 12.1%.
AviChina Industry & Technology
Overview: AviChina Industry & Technology Company Limited develops, manufactures, and sells civil aviation and defense products in Hong Kong and internationally, with a market cap of HK$31.81 billion.
Operations: The company's revenue segments include Aviation Entire Aircraft at CN￥20.16 billion, Aviation Engineering Services at CN￥11.05 billion, and Aviation Ancillary System and Related Business at CN￥53.01 billion.