Undervalued companies, such as Wheelock and Yuexiu Property, trade at a price less than their true values. 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.

Wheelock and Company Limited (SEHK:20)

Wheelock and Company Limited (HKSE: 00020) (“Wheelock”) is a listed property company, headquartered in Hong Kong. Started in 1857, and now led by CEO Woo Kuen, the company employs 14,200 people and has a market cap of HKD HK$125.06B, putting it in the large-cap group.

20’s shares are currently floating at around -60% lower than its actual level of $153.29, at a price tag of $61.25, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. Moreover, 20’s PE ratio is around 7.4x relative to its real estate peer level of 9.1x, meaning that relative to its competitors, we can buy 20’s stock at a cheaper price today. 20 is also robust in terms of financial health, with near-term assets able to cover upcoming and long-term liabilities. The stock’s debt-to equity ratio of 24% has been declining for the past few years demonstrating 20’s capacity to pay down its debt. Dig deeper into Wheelock here.

Yuexiu Property Company Limited (SEHK:123)

Yuexiu Property Company Limited, together with its subsidiaries, develops, sells, and manages properties primarily in Mainland China and Hong Kong. The company employs 6950 people and with the company’s market capitalisation at HKD HK$20.83B, we can put it in the large-cap stocks category.

123’s shares are currently trading at -54% below its actual worth of ¥3.64, at the market price of ¥1.68, according to my discounted cash flow model. The divergence signals an opportunity to buy 123 shares at a low price. Additionally, 123’s PE ratio is currently around 10.1x relative to its index peer level of 14.5x, meaning that relative to its comparable set of companies, you can buy 123 for a cheaper price. 123 is also strong in terms of its financial health, as current assets can cover liabilities in the near term and over the long run.

Interested in Yuexiu Property? Find out more here.

Postal Savings Bank of China Co., Ltd. (SEHK:1658)

Postal Savings Bank of China Co., Ltd. provides various banking products and services for retail and corporate customers in the People’s Republic of China. Started in 2007, and run by CEO Jiajin Lyu, the company now has 167,737 employees and with the company’s market capitalisation at HKD HK$423.79B, we can put it in the large-cap category.