3 SEHK Stocks Possibly Trading At Up To 41.6% Discount
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The Hong Kong market has recently faced a challenging environment, with the Hang Seng Index retreating as investors digest weak corporate earnings and economic data. Despite these headwinds, opportunities may exist for discerning investors to find value in stocks that are trading at significant discounts. In such a climate, identifying undervalued stocks involves looking for companies with solid fundamentals that may be temporarily overlooked by the market. Here are three SEHK stocks possibly trading at up to 41.6% discount.
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$3.68 | HK$6.77 | 45.6% |
| CIMC Enric Holdings (SEHK:3899) | HK$5.94 | HK$10.46 | 43.2% |
| Zhaojin Mining Industry (SEHK:1818) | HK$11.78 | HK$21.39 | 44.9% |
| Pacific Textiles Holdings (SEHK:1382) | HK$1.50 | HK$2.85 | 47.4% |
| Hangzhou SF Intra-city Industrial (SEHK:9699) | HK$11.60 | HK$19.86 | 41.6% |
| XD (SEHK:2400) | HK$18.20 | HK$31.09 | 41.5% |
| Digital China Holdings (SEHK:861) | HK$3.22 | HK$6.10 | 47.2% |
| Innovent Biologics (SEHK:1801) | HK$42.25 | HK$79.84 | 47.1% |
| United Company RUSAL International (SEHK:486) | HK$2.32 | HK$4.25 | 45.4% |
| Weimob (SEHK:2013) | HK$1.28 | HK$2.54 | 49.6% |
Let's take a closer look at a couple of our picks from the screened companies.
Xinte Energy
Overview: Xinte Energy Co., Ltd. and its subsidiaries focus on the research, development, production, and sale of high-purity polysilicon in China, with a market cap of HK$9.27 billion.
Operations: The company generates revenue from three primary segments: Polysilicon (CN￥12.78 billion), Operation of Wind Power and PV Power Plants (CN￥2.34 billion), and Construction of Wind Power and PV Power Plants (CN￥9.48 billion).
Estimated Discount To Fair Value: 12.5%
Xinte Energy, trading at HK$6.48, is undervalued relative to its fair value estimate of HK$7.41. Despite a significant net loss of CNY 887.02 million for the first half of 2024 due to a sharp decline in polysilicon prices, the company’s revenue is expected to grow faster than the Hong Kong market at 10.5% per year. Recent board changes aim to strengthen corporate governance and strategic oversight, potentially stabilizing future performance.
Techtronic Industries
Overview: Techtronic Industries Company Limited designs, manufactures, and markets power tools, outdoor power equipment, and floorcare and cleaning products internationally with a market cap of approximately HK$191.68 billion.