3 SEHK Stocks Estimated To Be Trading At Discounts Of 43.5% To 50%
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In the midst of global economic uncertainties, including rising oil prices and Middle East tensions, the Hong Kong stock market has shown resilience with a notable surge in its benchmark Hang Seng Index. This environment presents potential opportunities for investors to explore undervalued stocks that may be trading at significant discounts, offering a chance to capitalize on market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Giant Biogene Holding (SEHK:2367) | HK$50.60 | HK$97.66 | 48.2% |
| MicroPort NeuroScientific (SEHK:2172) | HK$10.14 | HK$18.97 | 46.5% |
| XD (SEHK:2400) | HK$24.00 | HK$47.62 | 49.6% |
| Semiconductor Manufacturing International (SEHK:981) | HK$27.20 | HK$53.47 | 49.1% |
| Shanghai INT Medical Instruments (SEHK:1501) | HK$31.90 | HK$56.42 | 43.5% |
| COSCO SHIPPING Energy Transportation (SEHK:1138) | HK$9.62 | HK$19.01 | 49.4% |
| Q Technology (Group) (SEHK:1478) | HK$5.50 | HK$11.00 | 50% |
| Nayuki Holdings (SEHK:2150) | HK$1.67 | HK$3.33 | 49.8% |
| Akeso (SEHK:9926) | HK$68.30 | HK$134.80 | 49.3% |
| Digital China Holdings (SEHK:861) | HK$3.15 | HK$5.99 | 47.4% |
Let's take a closer look at a couple of our picks from the screened companies.
Q Technology (Group)
Overview: Q Technology (Group) Company Limited is an investment holding company that designs, develops, manufactures, and sells camera and fingerprint recognition modules in Mainland China, Hong Kong, India, and internationally with a market cap of approximately HK$6.51 billion.
Operations: The company generates revenue primarily from its camera modules segment, which accounts for CN￥13.79 billion, and its fingerprint recognition modules segment, contributing CN￥781.23 million.
Estimated Discount To Fair Value: 50%
Q Technology (Group) is trading at HK$5.5, significantly below its estimated fair value of HK$11, suggesting it may be undervalued based on cash flows. Earnings have grown by a very large percentage over the past year and are forecast to continue growing at 36% annually, outpacing the Hong Kong market's average growth rate. Recent results show increased sales and net income for the first half of 2024, strengthening its financial position further.
Shanghai INT Medical Instruments
Overview: Shanghai INT Medical Instruments Co., Ltd. operates in the medical instruments sector and has a market cap of approximately HK$5.61 billion.