SEHK Stocks Possibly Priced Below Intrinsic Value In October 2024
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As global markets experience varied economic shifts, the Hong Kong stock market has seen significant fluctuations, with the Hang Seng Index recently facing a notable decline amidst broader concerns about China's economic stimulus measures. In this context of volatility and potential undervaluation, identifying stocks that may be priced below their intrinsic value can offer investors opportunities to capitalize on market inefficiencies.
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$63.72 | 48.2% |
| Giant Biogene Holding (SEHK:2367) | HK$52.30 | HK$97.23 | 46.2% |
| Kuaishou Technology (SEHK:1024) | HK$50.85 | HK$89.29 | 43.1% |
| MicroPort NeuroScientific (SEHK:2172) | HK$10.50 | HK$19.00 | 44.7% |
| Yadea Group Holdings (SEHK:1585) | HK$13.28 | HK$23.40 | 43.2% |
| Shanghai INT Medical Instruments (SEHK:1501) | HK$30.00 | HK$56.22 | 46.6% |
| Hangzhou SF Intra-city Industrial (SEHK:9699) | HK$11.02 | HK$19.66 | 43.9% |
| CSC Financial (SEHK:6066) | HK$9.75 | HK$17.76 | 45.1% |
| Digital China Holdings (SEHK:861) | HK$2.97 | HK$5.84 | 49.2% |
| DPC Dash (SEHK:1405) | HK$77.40 | HK$134.39 | 42.4% |
We're going to check out a few of the best picks from our screener tool.
Shenzhou International Group Holdings
Overview: Shenzhou International Group Holdings Limited is an investment holding company involved in the manufacture, printing, and sale of knitwear products across Mainland China, the European Union, the United States, Japan, and other international markets with a market cap of HK$99.14 billion.
Operations: The company's revenue from the manufacture and sale of knitwear products is CN￥26.38 billion.
Estimated Discount To Fair Value: 31.5%
Shenzhou International Group Holdings appears undervalued based on cash flows, trading at HK$65.95, below its estimated fair value of HK$96.32. Recent earnings growth of 24% and forecasted annual profit growth of 12.9% suggest strong financial health, supported by a reported net income increase to CNY 2.93 billion for the first half of 2024. However, dividend sustainability remains uncertain despite a recent HKD 1.25 per share payout announcement for June 2024.
Vobile Group
Overview: Vobile Group Limited is an investment holding company offering software as a service for digital content asset protection and transaction across the United States, Japan, Mainland China, and internationally, with a market cap of HK$5.20 billion.