ASX Value Picks Including Kina Securities And 2 Others With Estimated Discount Pricing
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Over the last 7 days, the Australian market has dropped 1.3%, but it remains up 10% over the past year, with earnings forecast to grow by 12% annually. In this context, identifying undervalued stocks can offer investors opportunities to capitalize on potential growth at a discount, and this article will highlight three such picks including Kina Securities.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Hansen Technologies (ASX:HSN) | A$4.35 | A$8.20 | 47% |
| Duratec (ASX:DUR) | A$1.40 | A$2.62 | 46.6% |
| Cettire (ASX:CTT) | A$1.56 | A$3.00 | 48% |
| HMC Capital (ASX:HMC) | A$7.84 | A$15.46 | 49.3% |
| Ansell (ASX:ANN) | A$29.88 | A$57.55 | 48.1% |
| Genesis Minerals (ASX:GMD) | A$2.11 | A$4.04 | 47.8% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| Clover (ASX:CLV) | A$0.385 | A$0.72 | 46.7% |
| Ai-Media Technologies (ASX:AIM) | A$0.725 | A$1.42 | 49% |
| Superloop (ASX:SLC) | A$1.72 | A$3.31 | 48.1% |
We're going to check out a few of the best picks from our screener tool.
Kina Securities
Overview: Kina Securities Limited (ASX:KSL) operates in Papua New Guinea, offering commercial banking, financial services, fund administration, investment management, and share brokerage services with a market cap of A$409.63 million.
Operations: Kina Securities Limited's revenue segments include PGK 391.80 million from Banking & Finance (Including Corporate) and PGK 39.65 million from Wealth Management.
Estimated Discount To Fair Value: 12.4%
Kina Securities is trading at A$1.01, which is 12.4% below its fair value estimate of A$1.15, suggesting it may be undervalued based on cash flows. Despite a high level of bad loans (7.9%), the company reported net interest income of PGK 111.71 million for H1 2024, up from PGK 98.23 million a year ago, though net income slightly decreased to PGK 42.24 million from PGK 46.37 million last year.
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The growth report we've compiled suggests that Kina Securities' future prospects could be on the up.
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Delve into the full analysis health report here for a deeper understanding of Kina Securities.
PWR Holdings
Overview: PWR Holdings Limited designs, prototypes, produces, tests, validates, and sells cooling products and solutions across multiple international markets with a market cap of A$934.50 million.
Operations: Revenue segments for PWR Holdings include PWR C&R at A$41.98 million and PWR Performance Products at A$111.26 million.
Estimated Discount To Fair Value: 18%
PWR Holdings, trading at A$9.05, is 18% below its fair value estimate of A$11.04, indicating potential undervaluation based on cash flows. The company reported full-year sales of A$97.53 million and net income of A$20.99 million, both up from the previous year. With earnings forecast to grow at 15% annually and a high return on equity projected at 27.9%, PWR Holdings shows strong financial health despite not being significantly undervalued by DCF standards.