SEHK Value Stocks That Might Be Trading Below Their Estimated Worth In October 2024
In This Article:
As Hong Kong's Hang Seng Index experiences a significant rally, driven by China's robust stimulus measures and renewed investor confidence, the market presents intriguing opportunities for value-seeking investors. In this environment, identifying stocks that are potentially trading below their estimated worth involves looking beyond current market exuberance to find companies with strong fundamentals and growth potential that may have been overlooked.
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$34.40 | HK$64.55 | 46.7% |
| Giant Biogene Holding (SEHK:2367) | HK$55.00 | HK$97.68 | 43.7% |
| FIT Hon Teng (SEHK:6088) | HK$2.43 | HK$4.35 | 44.1% |
| MicroPort NeuroScientific (SEHK:2172) | HK$9.87 | HK$18.93 | 47.9% |
| China Ruyi Holdings (SEHK:136) | HK$2.23 | HK$4.14 | 46.2% |
| Shanghai INT Medical Instruments (SEHK:1501) | HK$29.00 | HK$56.27 | 48.5% |
| Zylox-Tonbridge Medical Technology (SEHK:2190) | HK$13.94 | HK$25.89 | 46.2% |
| Nayuki Holdings (SEHK:2150) | HK$1.88 | HK$3.40 | 44.6% |
| Digital China Holdings (SEHK:861) | HK$3.01 | HK$5.89 | 48.9% |
| Akeso (SEHK:9926) | HK$69.15 | HK$134.26 | 48.5% |
We'll examine a selection from our screener results.
Melco International Development
Overview: Melco International Development Limited is an investment holding company involved in the leisure and entertainment industry across Macau, the Philippines, and Cyprus, with a market cap of HK$8.49 billion.
Operations: The company's revenue primarily comes from its casino and hospitality segment, generating HK$34.27 billion.
Estimated Discount To Fair Value: 35.9%
Melco International Development is trading at HK$5.6, significantly below its estimated fair value of HK$8.74, suggesting it may be undervalued based on cash flows. Recent earnings show improved performance with sales increasing to HK$17.77 billion and a reduced net loss of HK$253.22 million for the first half of 2024. Forecasts indicate strong profit growth over the next three years, alongside a high return on equity projected at 41.3%.
Bairong
Overview: Bairong Inc. is a cloud-based AI turnkey services provider in China with a market cap of HK$5.38 billion.
Operations: The company generates revenue from its data processing segment, amounting to CN￥2.76 billion.