Operations: The company generates revenue primarily from its electric two-wheeled vehicles and related accessories segment, amounting to CN￥31.76 billion, and from batteries and electric drive components, contributing CN￥5.23 billion.

Estimated Discount To Fair Value: 44.7%

Yadea Group Holdings is trading at HK$12.88, significantly below its estimated fair value of HK$23.27, highlighting potential undervaluation based on cash flows. Despite a decline in half-year sales to CNY 14.41 billion from CNY 17.04 billion the previous year, earnings are forecast to grow annually by 17.2%, surpassing the Hong Kong market average. Recent strategic expansions into Thailand and Indonesia aim to bolster its global presence and support sustainable growth in electric vehicles.

• The growth report we've compiled suggests that Yadea Group Holdings' future prospects could be on the up.

• Click to explore a detailed breakdown of our findings in Yadea Group Holdings' balance sheet health report.

Meituan

Overview: Meituan is a technology retail company in the People’s Republic of China with a market cap of HK$1.16 trillion.

Operations: The company's revenue is primarily derived from two segments: Core Local Commerce, which contributes CN￥228.13 billion, and New Initiatives, accounting for CN￥77.56 billion.

Estimated Discount To Fair Value: 49%

Meituan, trading at HK$194.9, is significantly undervalued compared to its fair value estimate of HK$382.33. The company's earnings are projected to grow 26.34% annually, outpacing the Hong Kong market average of 12.1%. Despite recent insider selling and a low forecasted return on equity of 19%, Meituan's robust cash flow position is supported by substantial share buybacks totaling $2 billion and fixed-income offerings amounting to $1.2 billion in recent months.

• Insights from our recent growth report point to a promising forecast for Meituan's business outlook.

• Get an in-depth perspective on Meituan's balance sheet by reading our health report here.

Summing It All Up

• Explore the 39 names from our Undervalued SEHK Stocks Based On Cash Flows screener here.

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• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SEHK:1024 SEHK:1585 and SEHK:3690.

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