Companies that are recently trading at a market price lower than their real values include Bank of Tianjin and Road King Infrastructure. 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.
Bank of Tianjin Co., Ltd. (SEHK:1578)
Bank of Tianjin Co., Ltd. provides banking products and services in China. Established in 1996, and currently headed by CEO Liguo Sun, the company currently employs 6,441 people and with the company’s market capitalisation at HKD HK$29.99B, we can put it in the large-cap category.
1578’s shares are now hovering at around -53% lower than its true value of ¥10.51, at a price of HK$4.94, based on its expected future cash flows. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. In terms of relative valuation, 1578’s PE ratio stands at 5.35x against its its Banks peer level of, 6.77x indicating that relative to its comparable set of companies, we can buy 1578’s stock at a cheaper price today. 1578 also has a healthy balance sheet, with short-term assets covering liabilities in the near future as well as in the long run.
Continue research on Bank of Tianjin here.
Road King Infrastructure Limited (SEHK:1098)
Road King Infrastructure Limited, an investment holding company, invests in, develops, operates, and manages property projects and toll roads in the People’s Republic of China. Established in 1994, and headed by CEO Yuk Bing Ko, the company employs 3,188 people and with the company’s market cap sitting at HKD HK$10.80B, it falls under the large-cap stocks category.
1098’s stock is currently hovering at around -78% beneath its true level of $67.04, at a price of HK$14.44, based on its expected future cash flows. This mismatch indicates a chance to invest in 1098 at a discounted price. Furthermore, 1098’s PE ratio stands at around 8.13x compared to its Real Estate peer level of, 8.78x meaning that relative to its comparable company group, 1098’s shares can be purchased for a lower price. 1098 is also a financially robust company, with current assets covering liabilities in the near term and over the long run.
More detail on Road King Infrastructure here.
China Mobile Limited (SEHK:941)
China Mobile Limited, an investment holding company, provides mobile telecommunications and related services in Mainland China and Hong Kong. Founded in 1997, and currently headed by CEO Yue Li, the company size now stands at 493,000 people and with the market cap of HKD HK$1.52T, it falls under the large-cap category.
941’s stock is currently hovering at around -44% less than its value of ¥133.3, at a price of HK$74.00, based on my discounted cash flow model. The mismatch signals a potential chance to invest in 941 at a discounted price. What’s even more appeal is that 941’s PE ratio stands at around 10.9x while its Wireless Telcom peer level trades at, 17.19x indicating that relative to its competitors, 941’s stock can be bought at a cheaper price. 941 is also in great financial shape, with current assets covering liabilities in the near term and over the long run. 941 also has a miniscule amount of debt on its balance sheet, which gives it headroom to grow and financial flexibility. Dig deeper into China Mobile here.
For more financially sound, undervalued companies to add to your portfolio, you can use our free platform to explore our 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.