Alibaba Pictures Group And 2 Other Stocks On SEHK That May Be Trading Below Estimated Value
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As global markets navigate the complexities of rising U.S. Treasury yields and shifting monetary policies, Hong Kong's Hang Seng Index has recently experienced a decline amidst broader economic adjustments in China. In this environment, identifying stocks that may be trading below their estimated value can present potential opportunities for investors looking to capitalize on market inefficiencies.
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$5.56 | HK$10.14 | 45.2% |
| Giant Biogene Holding (SEHK:2367) | HK$53.50 | HK$98.89 | 45.9% |
| MicroPort NeuroScientific (SEHK:2172) | HK$10.04 | HK$18.81 | 46.6% |
| Kuaishou Technology (SEHK:1024) | HK$47.30 | HK$88.39 | 46.5% |
| Alibaba Pictures Group (SEHK:1060) | HK$0.48 | HK$0.95 | 49.6% |
| Hangzhou SF Intra-city Industrial (SEHK:9699) | HK$10.04 | HK$19.44 | 48.3% |
| Semiconductor Manufacturing International (SEHK:981) | HK$28.80 | HK$54.36 | 47% |
| CSC Financial (SEHK:6066) | HK$9.43 | HK$17.20 | 45.2% |
| DPC Dash (SEHK:1405) | HK$65.30 | HK$130.54 | 50% |
| Sands China (SEHK:1928) | HK$20.45 | HK$38.92 | 47.5% |
Here we highlight a subset of our preferred stocks from the screener.
Alibaba Pictures Group
Overview: Alibaba Pictures Group Limited, an investment holding company with a market cap of HK$14.26 billion, operates in the content, technology, and IP merchandising and commercialization sectors in Hong Kong and the People's Republic of China.
Operations: The company's revenue segments include CN￥394.28 million from Damai, CN￥596.12 million from Drama Series Production, CN￥920.22 million from Film Ticketing and Technology Platform, CN￥1.05 billion from IP Merchandising and Commercialization, and CN￥2.07 billion from Film Investment, Production, Promotion and Distribution.
Estimated Discount To Fair Value: 49.6%
Alibaba Pictures Group is trading at HK$0.48, significantly below its estimated fair value of HK$0.95, suggesting it may be undervalued based on cash flows. The company has become profitable this year, with earnings expected to grow substantially by 35.5% annually over the next three years, outpacing the Hong Kong market average of 12.2%. However, shareholders experienced dilution in the past year and recent bylaw amendments were approved in August 2024.
AK Medical Holdings
Overview: AK Medical Holdings Limited is an investment holding company that designs, develops, produces, and markets orthopedic joint implants and related products in China and internationally, with a market cap of HK$5.49 billion.