3 SEHK Stocks Estimated To Be Undervalued By Up To 49.8%
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As global markets experience mixed signals, with the Hong Kong Hang Seng Index recently giving up 0.43%, investors are increasingly on the lookout for undervalued opportunities. In this environment, identifying stocks that are trading below their intrinsic value can offer significant potential for growth and stability amidst market fluctuations.
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$6.75 | 46.4% |
| WuXi XDC Cayman (SEHK:2268) | HK$20.10 | HK$39.32 | 48.9% |
| Shanghai INT Medical Instruments (SEHK:1501) | HK$28.20 | HK$56.20 | 49.8% |
| BYD (SEHK:1211) | HK$239.80 | HK$461.26 | 48% |
| Vobile Group (SEHK:3738) | HK$1.47 | HK$2.61 | 43.7% |
| Digital China Holdings (SEHK:861) | HK$3.24 | HK$6.11 | 47% |
| United Company RUSAL International (SEHK:486) | HK$2.27 | HK$4.25 | 46.6% |
| Innovent Biologics (SEHK:1801) | HK$44.05 | HK$80.41 | 45.2% |
| AK Medical Holdings (SEHK:1789) | HK$4.22 | HK$8.33 | 49.4% |
| Jinke Smart Services Group (SEHK:9666) | HK$7.59 | HK$13.78 | 44.9% |
Here's a peek at a few of the choices from the screener.
BYD
Overview: BYD Company Limited, along with its subsidiaries, operates in the automobiles and batteries sectors across China, Hong Kong, Macau, Taiwan, and internationally with a market cap of HK$769.84 billion.
Operations: Revenue Segments (in millions of CN￥): Automobiles and Related Products and Other Products: ￥507.52 billion, Mobile Handset Components, Assembly Service and Other Products: ￥154.49 billion
Estimated Discount To Fair Value: 48%
BYD Company Limited appears undervalued based on discounted cash flow analysis, trading at HK$239.8, significantly below its estimated fair value of HK$461.26. Recent half-year results show strong financial performance with net income rising to CNY 13.63 billion from CNY 10.95 billion a year ago, supported by substantial production and sales volume increases. The strategic partnership with Uber and expansion in Thailand further bolster BYD’s long-term growth prospects, enhancing its cash flow potential.
Shanghai INT Medical Instruments
Overview: Shanghai INT Medical Instruments Co., Ltd. (SEHK:1501) is involved in the development, manufacturing, and distribution of medical instruments and has a market cap of HK$4.94 billion.
Operations: Shanghai INT Medical Instruments Co., Ltd. (SEHK:1501) is involved in the development, manufacturing, and distribution of medical instruments and has a market cap of HK$4.94 billion. The company's revenue from its Cardiovascular Interventional Business segment amounts to CN￥718.71 million.