Best Cheap Stock in March
Companies, such as HC International, trading at a market price below their true values are considered to be undervalued. Smart investors can make money from this discrepancy by buying these shares, because they believe the current market prices will eventually move towards their true value. If you’re looking for capital gains in your next investment, I suggest you take a look at my list of potentially undervalued stocks.
HC International, Inc. (SEHK:2280)
HC International, Inc., an investment holding company, provides business information through online and offline channels in the People’s Republic of China. Started in 1992, and currently headed by CEO Jun Liu, the company employs 2,851 people and has a market cap of HKD HK$5.52B, putting it in the mid-cap stocks category.
2280’s shares are now hovering at around -71% beneath its true level of ¥16.94, at a price tag of HK$4.94, according to my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. Moreover, 2280’s PE ratio is trading at around 15.41x compared to its Internet peer level of, 22.95x indicating that relative to other stocks in the industry, we can invest in 2280 at a lower price. 2280 is also a financially robust company, as short-term assets amply cover upcoming and long-term liabilities.
Interested in HC International? Find out more here.
Powerlong Real Estate Holdings Limited (SEHK:1238)
Powerlong Real Estate Holdings Limited, an investment holding company, invests in, develops, and manages properties in the People’s Republic of China. Founded in 2007, and currently headed by CEO Wa Fong Hoi, the company size now stands at 8,949 people and with the company’s market capitalisation at HKD HK$15.67B, we can put it in the large-cap group.
1238’s stock is currently floating at around -77% lower than its value of ¥16.95, at the market price of HK$3.96, according to my discounted cash flow model. The difference between value and price signals a potential opportunity to buy 1238 shares at a discount. Furthermore, 1238’s PE ratio stands at 4.44x relative to its Real Estate peer level of, 8.08x implying that relative to its peers, you can purchase 1238’s stock for a lower price right now. 1238 is also a financially robust company, as current assets can cover liabilities in the near term and over the long run.
More detail on Powerlong Real Estate Holdings here.
International Housewares Retail Company Limited (SEHK:1373)
International Housewares Retail Company Limited, together with its subsidiaries, engages in the retail sale and trading of housewares products. Started in 1991, and headed by CEO Siu Hong Chong, the company employs 2,160 people and with the stock’s market cap sitting at HKD HK$1.04B, it comes under the small-cap stocks category.
1373’s stock is currently hovering at around -44% under its actual worth of $2.6, at a price tag of HK$1.45, based on its expected future cash flows. This mismatch indicates a chance to invest in 1373 at a discounted price. In terms of relative valuation, 1373’s PE ratio is trading at 11.21x while its Specialty Retail peer level trades at, 15.76x meaning that relative to its comparable set of companies, 1373’s shares can be purchased for a lower price. 1373 is also strong financially, with near-term assets able to cover upcoming and long-term liabilities. Finally, its debt relative to equity is 4.95%, which has been diminishing for the last couple of years demonstrating 1373’s ability to pay down its debt. More on International Housewares Retail here.
Or create your own list by filtering SEHK companies based on fundamentals such as intrinsic discount, health score and future outlook using this free stock screener.
For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
