Best SEHK Undervalued Stocks
Recent undervalued companies based on their current market price include SHK Hong Kong Industries and Quanzhou Huixin Micro-Credit. 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.
SHK Hong Kong Industries Limited (SEHK:666)
SHK Hong Kong Industries Limited is a venture capital firm specializing in early venture, mid venture, emerging growth, and growth capital investments. SHK Hong Kong Industries was established in 1990 and has a market cap of HKD HK$1.07B, putting it in the small-cap stocks category.
666’s stock is currently floating at around -55% beneath its actual value of $0.58, at a price of HK$0.26, according to my discounted cash flow model. The difference between value and price signals a potential opportunity to buy 666 shares at a discount. Furthermore, 666’s PE ratio is currently around 6.41x relative to its Capital Markets peer level of, 12.86x implying that relative to its competitors, you can buy 666 for a cheaper price. 666 is also in great financial shape, with current assets covering liabilities in the near term and over the long run. 666 also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. Continue research on SHK Hong Kong Industries here.
Quanzhou Huixin Micro-Credit Co., Ltd. (SEHK:1577)
Quanzhou Huixin Micro-credit Co., Ltd., a microfinance company, provides various short-term financing solutions in the People’s Republic of China. Started in 2010, and headed by CEO Zhirui Wu, the company employs 55 people and with the company’s market cap sitting at HKD HK$816.00M, it falls under the small-cap group.
1577’s shares are currently trading at -43% below its true value of ¥2.09, at a price tag of HK$1.20, based on its expected future cash flows. This mismatch indicates a potential opportunity to buy low. What’s even more appeal is that 1577’s PE ratio is around 7.29x compared to its Consumer Finance peer level of, 7.53x suggesting that relative to its peers, we can invest in 1577 at a lower price. 1577 also has a healthy balance sheet, with near-term assets able to cover upcoming and long-term liabilities.
Continue research on Quanzhou Huixin Micro-Credit here.
China Lesso Group Holdings Limited (SEHK:2128)
China Lesso Group Holdings Limited, an investment holding company, manufactures and sells building materials and interior decoration products in the People’s Republic of China and internationally. The company currently employs 10600 people and with the stock’s market cap sitting at HKD HK$19.08B, it comes under the large-cap group.
2128’s stock is now trading at -59% below its real value of ¥15.07, at the market price of HK$6.15, according to my discounted cash flow model. This difference in price and value gives us a chance to buy low. Also, 2128’s PE ratio is trading at around 6.77x relative to its Building peer level of, 16.06x meaning that relative to its comparable company group, 2128’s stock can be bought at a cheaper price. 2128 is also strong in terms of its financial health, as short-term assets amply cover upcoming and long-term liabilities.
Continue research on China Lesso Group Holdings here.
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.
