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A stock that you can buy at a price below what it is worth is considered undervalued. This is the case for Win Win Way Construction Holdings and Powerlong Real Estate Holdings. 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.
Win Win Way Construction Holdings Ltd. (SEHK:994)
Win Win Way Construction Holdings Ltd., an investment holding company, operates as a construction company in Hong Kong. Started in 1999, and currently run by , the company size now stands at 353 people and has a market cap of HKD HK$348.16M, putting it in the small-cap group.
994’s shares are now trading at -94% under its intrinsic value of $11.21, at a price of HK$0.68, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. In addition to this, 994’s PE ratio is trading at around 13.16x relative to its index peer level of, 13.41x indicating that relative to its comparable company group, we can purchase 994’s shares for cheaper. 994 is also strong financially, with current assets covering liabilities in the near term and over the long run.
Interested in Win Win Way Construction Holdings? Find out more here.
Powerlong Real Estate Holdings Limited (SEHK:1238)
Powerlong Real Estate Holdings Limited, an investment holding company, invests in, develops, and manages properties in the People’s Republic of China. Formed in 2007, and now led by CEO Wa Fong Hoi, the company currently employs 9,718 people and with the company’s market cap sitting at HKD HK$16.74B, it falls under the large-cap group.
1238’s shares are now hovering at around -75% less than its value of ¥17.04, at a price of HK$4.23, according to my discounted cash flow model. This discrepancy signals a potential opportunity to buy 1238 shares at a low price. Moreover, 1238’s PE ratio is trading at around 4.04x relative to its Real Estate peer level of, 7.13x suggesting that relative to its peers, you can purchase 1238’s stock for a lower price right now. 1238 is also strong financially, with near-term assets able to cover upcoming and long-term liabilities.
More on Powerlong Real Estate Holdings here.
International Housewares Retail Company Limited (SEHK:1373)
International Housewares Retail Company Limited, together with its subsidiaries, engages in the retail sale and trading of housewares products. Established in 1991, and currently lead by Siu Hong Chong, the company provides employment to 2,160 people and has a market cap of HKD HK$1.05B, putting it in the small-cap group.