Top 3 SEHK Stocks Estimated To Be Undervalued In September 2024
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As global markets grapple with economic uncertainties, the Hong Kong market has not been immune to volatility. Despite these challenges, opportunities still exist for discerning investors seeking undervalued stocks in the region. Identifying a good stock often involves looking at companies that are fundamentally strong but currently trading below their intrinsic value due to broader market conditions.
Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Bosideng International Holdings (SEHK:3998) | HK$3.62 | HK$6.74 | 46.3% |
| Shenzhou International Group Holdings (SEHK:2313) | HK$55.85 | HK$95.67 | 41.6% |
| CIMC Enric Holdings (SEHK:3899) | HK$5.80 | HK$10.44 | 44.4% |
| Zhaojin Mining Industry (SEHK:1818) | HK$12.34 | HK$21.44 | 42.4% |
| Hangzhou SF Intra-city Industrial (SEHK:9699) | HK$10.90 | HK$19.87 | 45.1% |
| XD (SEHK:2400) | HK$18.16 | HK$31.08 | 41.6% |
| Vobile Group (SEHK:3738) | HK$1.48 | HK$2.64 | 43.9% |
| Digital China Holdings (SEHK:861) | HK$3.21 | HK$6.10 | 47.4% |
| United Company RUSAL International (SEHK:486) | HK$2.30 | HK$4.25 | 45.9% |
| Innovent Biologics (SEHK:1801) | HK$43.30 | HK$79.60 | 45.6% |
Let's dive into some prime choices out of the screener.
Zhou Hei Ya International Holdings
Overview: Zhou Hei Ya International Holdings Company Limited, with a market cap of HK$3.12 billion, produces, markets, and retails casual braised food in the People’s Republic of China.
Operations: The company generates revenue primarily from the production, marketing, and retailing of casual braised duck-related food, amounting to CN￥2.59 billion.
Estimated Discount To Fair Value: 15.1%
Zhou Hei Ya International Holdings appears undervalued based on cash flows, trading at HK$1.43, below its estimated fair value of HK$1.68. Despite a recent decline in revenue to CNY 1.26 billion and net income to CNY 32.91 million for the first half of 2024, analysts forecast significant earnings growth of over 55% annually for the next three years, outpacing the Hong Kong market's average growth rate.
K. Wah International Holdings
Overview: K. Wah International Holdings Limited is an investment holding company involved in property development and investment in Hong Kong and Mainland China, with a market cap of HK$5.20 billion.
Operations: The company's revenue segments include Property Investment (HK$634.10 million), Property Development in Hong Kong (HK$669.98 million), and Property Development in Mainland China (HK$2.81 billion).