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The Hong Kong market has recently seen a mix of performances, with the Hang Seng Index gaining 2.14% amid a backdrop of weaker-than-expected corporate earnings reports in China. Despite these challenges, there remain opportunities for discerning investors to find stocks trading below their intrinsic value. In this article, we explore three SEHK stocks that are estimated to trade at up to 49.9% below their intrinsic value, presenting potential investment opportunities in the current market landscape.
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$3.83 | HK$6.77 | 43.4% |
| Beijing Jingneng Clean Energy (SEHK:579) | HK$1.89 | HK$3.30 | 42.7% |
| WuXi XDC Cayman (SEHK:2268) | HK$20.05 | HK$39.32 | 49% |
| Tencent Holdings (SEHK:700) | HK$382.00 | HK$762.88 | 49.9% |
| Pacific Textiles Holdings (SEHK:1382) | HK$1.54 | HK$2.84 | 45.8% |
| Vobile Group (SEHK:3738) | HK$1.45 | HK$2.62 | 44.6% |
| China Renaissance Holdings (SEHK:1911) | HK$7.27 | HK$12.30 | 40.9% |
| United Company RUSAL International (SEHK:486) | HK$2.39 | HK$4.25 | 43.8% |
| AK Medical Holdings (SEHK:1789) | HK$4.37 | HK$8.40 | 48% |
| DPC Dash (SEHK:1405) | HK$68.00 | HK$134.44 | 49.4% |
Here we highlight a subset of our preferred stocks from the screener.
AK Medical Holdings
Overview: AK Medical Holdings Limited designs, develops, produces, and markets orthopedic joint implants and related products in China and internationally, with a market cap of HK$4.90 billion.
Operations: The company's revenue segments include CN¥989.17 million from orthopedic implants in China and CN¥159.06 million from orthopedic implants in the United Kingdom.
Estimated Discount To Fair Value: 48%
AK Medical Holdings reported half-year sales of CNY 657.1 million and net income of CNY 139.25 million, showing modest growth from the previous year. Despite a recent board change, the company remains stable with earnings per share consistent at CNY 0.12. Trading at HK$4.37, it is significantly undervalued based on discounted cash flow estimates with a fair value of HK$8.4, suggesting strong potential for future appreciation in cash flows and revenue growth outpacing the Hong Kong market.
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Our growth report here indicates AK Medical Holdings may be poised for an improving outlook.
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Take a closer look at AK Medical Holdings' balance sheet health here in our report.
ZJLD Group
Overview: ZJLD Group Inc is involved in the production and sale of baijiu products in China, with a market cap of HK$24.53 billion.
Operations: ZJLD Group's revenue segments include CN¥4.98 billion from Zhen Jiu, CN¥1.29 billion from Li Du, CN¥844.13 million from Xiang Jiao, and CN¥388.16 million from Kai Kou Xiao.