SEHK AK Medical Holdings Among 3 Stocks Possibly Undervalued According to Estimates

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As global markets navigate the complexities of geopolitical tensions and economic shifts, the Hong Kong stock market has shown resilience, with the Hang Seng Index climbing 10.2% recently. Amidst these fluctuations, investors are keen to identify stocks that may be undervalued, presenting potential opportunities for those looking to capitalize on market inefficiencies. In this context, understanding what makes a stock potentially undervalued—such as strong fundamentals or overlooked growth prospects—can be crucial in making informed investment decisions.

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$33.00

HK$63.32

47.9%

Giant Biogene Holding (SEHK:2367)

HK$52.30

HK$97.51

46.4%

Zhaojin Mining Industry (SEHK:1818)

HK$13.10

HK$23.97

45.3%

Kuaishou Technology (SEHK:1024)

HK$50.85

HK$89.18

43%

MicroPort NeuroScientific (SEHK:2172)

HK$10.50

HK$18.87

44.4%

Yadea Group Holdings (SEHK:1585)

HK$13.28

HK$23.07

42.4%

Shanghai INT Medical Instruments (SEHK:1501)

HK$30.00

HK$56.11

46.5%

CSC Financial (SEHK:6066)

HK$9.75

HK$17.79

45.2%

Hangzhou SF Intra-city Industrial (SEHK:9699)

HK$11.02

HK$19.71

44.1%

Digital China Holdings (SEHK:861)

HK$2.97

HK$5.83

49.1%

Click here to see the full list of 36 stocks from our Undervalued SEHK Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

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$5.32 billion.

Operations: The company's revenue segments include CN¥989.17 million from orthopedic implants in China and CN¥159.06 million from orthopedic implants in the United Kingdom.

Estimated Discount To Fair Value: 40.9%

AK Medical Holdings is trading at HK$4.95, significantly below its estimated fair value of HK$8.38, suggesting it is undervalued based on cash flows. Its earnings are projected to grow 28.7% annually over the next three years, outpacing the Hong Kong market's growth rate of 12.2%. Despite recent management changes and stable half-year earnings results, AK Medical shows potential for robust revenue growth at 24.7% per year compared to the market average of 7.4%.

SEHK:1789 Discounted Cash Flow as at Oct 2024
SEHK:1789 Discounted Cash Flow as at Oct 2024

MicroPort CardioFlow Medtech

Overview: MicroPort CardioFlow Medtech Corporation is a medical device company focused on developing and commercializing transcatheter and surgical solutions for structural heart diseases in China and internationally, with a market cap of HK$1.98 billion.