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The Hong Kong market has recently experienced mixed performance, with the Hang Seng Index declining by 0.45% amid weak manufacturing data and concerns over domestic demand. This presents a potential opportunity for discerning investors to identify undervalued stocks that may be trading below their intrinsic value. In light of current market conditions, focusing on stocks with strong fundamentals and growth potential can be particularly advantageous. Here are three SEHK stocks, including Ocumension Therapeutics, estimated to be trading below their intrinsic value.
Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Best Pacific International Holdings (SEHK:2111) | HK$2.20 | HK$4.33 | 49.2% |
| Bosideng International Holdings (SEHK:3998) | HK$3.90 | HK$6.79 | 42.6% |
| BYD Electronic (International) (SEHK:285) | HK$29.30 | HK$53.40 | 45.1% |
| Inspur Digital Enterprise Technology (SEHK:596) | HK$3.05 | HK$5.70 | 46.5% |
| Shanghai INT Medical Instruments (SEHK:1501) | HK$28.25 | HK$56.41 | 49.9% |
| Pacific Textiles Holdings (SEHK:1382) | HK$1.69 | HK$2.99 | 43.5% |
| iDreamSky Technology Holdings (SEHK:1119) | HK$2.20 | HK$4.20 | 47.7% |
| Weimob (SEHK:2013) | HK$1.19 | HK$2.19 | 45.6% |
| Innovent Biologics (SEHK:1801) | HK$39.25 | HK$73.73 | 46.8% |
| MicroPort CardioFlow Medtech (SEHK:2160) | HK$0.75 | HK$1.39 | 45.9% |
Here we highlight a subset of our preferred stocks from the screener.
Ocumension Therapeutics
Overview: Ocumension Therapeutics, with a market cap of HK$4.84 billion, operates as an ophthalmic pharmaceutical platform company in the People's Republic of China through its subsidiaries.
Operations: The company's revenue segment includes discovering, developing, and commercializing ophthalmic therapies, generating CN¥246.37 million.
Estimated Discount To Fair Value: 11.4%
Ocumension Therapeutics, trading at HK$6.98, is considered undervalued with a fair value estimate of HK$7.88. The company’s revenue is forecast to grow 35.2% annually, significantly outpacing the Hong Kong market's 7.4%. Earnings are projected to increase by 93.7% per year and the firm is expected to become profitable within three years. Recent acceptance of their BLA for OT-702 by China’s CDE boosts future cash flow prospects through commercialization rights in China.
Shanghai Conant Optical
Overview: Shanghai Conant Optical Co., Ltd. manufactures and sells resin spectacle lenses across Mainland China, the Americas, Asia, Europe, Oceania, and Africa with a market cap of HK$4.90 billion.