Amid fluctuations in global markets, the Hong Kong market’s benchmark Hang Seng Index fell sharply, reflecting waning optimism about the Chinese government’s economic stimulus measures. In this environment of uncertainty, identifying undervalued stocks can be important for investors seeking opportunities that may deliver potential value relative to their intrinsic value. .
Top 10 undervalued stocks based on cash flow in Hong Kong
name
current price
Fair value (estimated)
Discount (estimated)
BYD Electronic (International) (SEHK:285)
32.40 Hong Kong dollar
HK$63.19
48.7%
Giant Biogene Holdings (SEHK:2367)
51.70 Hong Kong dollar
HK$96.49
46.4%
Laop Gold (SEHK:6181)
HK$160.10
HK$308.52
48.1%
Kuaishou Technology (SEHK:1024)
Hong Kong dollar 47.45
HK$88.46
46.4%
Yadea Group Holdings (SEHK:1585)
HK$12.28
23.20 Hong Kong dollar
47.1%
Shanghai INT Medical Equipment (SEHK:1501)
28.30 Hong Kong dollar
HK$55.81
49.3%
CSC Financial (SEHK:6066)
HK$8.95
HK$17.58
49.1%
Hangzhou SF Urban Industry (SEHK:9699)
HK$10.48
19.50 Hong Kong dollar
46.3%
Innovent Biologics (SEHK:1801)
Hong Kong dollar 44.60
HK$80.73
44.8%
AK Medical Holdings (SEHK:1789)
4.43 Hong Kong dollar
Hong Kong dollar 8.32
46.7%
Click here to see the complete list of 37 SEHK stocks that are undervalued based on cash flow screening.
We’re going to check out some of our picks from the screener tool.
Overview: China Resources Mixc Lifestyle Services Limited is an investment holding company providing property management and commercial operation services in the People’s Republic of China with a market capitalization of approximately HK$72.93 billion.
Business Operations: The Company generates revenues of CA$10.22 billion through its property management business and CA$5.71 billion from its commercial management business.
Estimated discount rate to fair value: 41%
China Resources Mixk Lifestyle Services is trading at HK$31.95, significantly below its estimated fair value of HK$54.13, suggesting it may be undervalued based on cash flows. I am doing it. The company has reported strong profit growth of 33.1% over the past year and is forecast to grow its profits by 14.6% for the year, above the Hong Kong market average of 12.1%. In recent interim financial results, sales and net income have improved, and the company’s financial position has been strengthened through increased dividends and special dividends.
SEHK:1209 Discounted cash flow as of October 2024
Overview: Giant Biogene Holding Co., Ltd. is an investment holding company engaged in the research, development, manufacturing and sales of bioactive substance-based beauty and health products in China with a market capitalization of HK$52.18 billion.
What it does: The company generates C$4.46 billion in revenue from its biotechnology segment.
Estimated discount rate to fair value: 46.4%
Giant Biogene Holding is trading at HK$51.77, well below its estimated fair value of HK$96.49, highlighting potential undervaluation based on cash flows. Recent earnings for the first half of 2024 showed significant growth, with sales increasing to 2.54 billion yuan and net profit to 983.16 million yuan. Despite past shareholder dilution concerns, earnings are expected to grow at a robust annual rate of over 23%, above the Hong Kong market average.
SEHK:2367 Discounted cash flow as of October 2024
Overview: BYD Electronic (International) Company Limited is an investment holding company engaged in the design, manufacture, assembly and sale of mobile phone components and modules in China and overseas, with a market capitalization of approximately HK$73 billion.
What it does: The company generates revenues of C$152.36 billion from its business of manufacturing, assembling and selling mobile phone components and modules.
Estimated discount rate to fair value: 48.7%
BYD Electronics (International) is trading at HK$32.4, well below its estimated fair value of HK$63.19, suggesting a significant undervaluation based on cash flows. The company’s recent 2024 first half financial report showed that net profit remained stable at 1,517.8 million yuan, even though sales increased to 78.58 billion yuan year-on-year. Profits are expected to grow by more than 24% annually, outpacing the average growth rate of the Hong Kong market.
SEHK:285 Discounted cash flow as of October 2024
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
Companies covered in this article include SEHK:1209 SEHK:2367 and SEHK:285.
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