Stocks recently deemed undervalued include Changan Minsheng APLL Logistics and Tianjin Tianbao Energy, as they trade at a market price below their true valuations. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
Changan Minsheng APLL Logistics Co., Ltd. (SEHK:1292)
Changan Minsheng APLL Logistics Co., Ltd., together with its subsidiaries, provides supply chain management services for automobiles and automobile raw materials, components, and parts in the People’s Republic of China. Established in 2001, and currently headed by CEO Jinggang Shi, the company employs 8,530 people and has a market cap of HKD HK$810.32M, putting it in the small-cap group.
1292’s shares are currently hovering at around -70% less than its intrinsic value of ¥16.73, at a price tag of HK$5.00, based on my discounted cash flow model. This discrepancy gives us a chance to invest in 1292 at a discount. What’s even more appeal is that 1292’s PE ratio is trading at around 5.14x against its its Logistics peer level of, 12.96x meaning that relative to its comparable set of companies, you can buy 1292 for a cheaper price. 1292 is also robust in terms of financial health, with short-term assets covering liabilities in the near future as well as in the long run.
Dig deeper into Changan Minsheng APLL Logistics here.
Tianjin Tianbao Energy Co., Ltd. (SEHK:1671)
Tianjin Tianbao Energy Co., Ltd. generates and supplies power to the Tianjin Electric Power Company. Started in 1992, and currently run by Cheng Xing, the company currently employs 71 people and has a market cap of HKD HK$206.93M, putting it in the small-cap group.
1671’s stock is now hovering at around -86% under its true value of ¥12.38, at the market price of HK$1.79, based on its expected future cash flows. This discrepancy gives us a chance to invest in 1671 at a discount. Furthermore, 1671’s PE ratio is trading at around 5.52x while its Renewable Energy peer level trades at, 13.53x implying that relative to its comparable set of companies, we can purchase 1671’s shares for cheaper. 1671 is also a financially robust company, with current assets covering liabilities in the near term and over the long run. 1671 has zero debt on its books as well, meaning it has no long term debt obligations to worry about. More on Tianjin Tianbao Energy here.