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Companies that are recently trading at a market price lower than their real values include China Outfitters Holdings and Boyaa Interactive International. 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.
China Outfitters Holdings Limited (SEHK:1146)
China Outfitters Holdings Limited, an investment holding company, designs, manufactures, markets, and sells apparels and accessories in the People’s Republic of China. Formed in 1999, and now led by CEO Yongli Zhang, the company currently employs 2,586 people and has a market cap of HKD HK$895.82M, putting it in the small-cap category.
1146’s stock is currently trading at -80% beneath its actual worth of ¥1.27, at a price tag of HK$0.26, according to my discounted cash flow model. The discrepancy signals an opportunity to buy low. In terms of relative valuation, 1146’s PE ratio is trading at around 13.09x relative to its Luxury peer level of, 14.13x indicating that relative to its comparable company group, 1146’s shares can be purchased for a lower price. 1146 is also in great financial shape, with near-term assets able to cover upcoming and long-term liabilities. 1146 has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Interested in China Outfitters Holdings? Find out more here.
Boyaa Interactive International Limited (SEHK:434)
Boyaa Interactive International Limited, an investment holding company, develops and operates online card and board games in the People’s Republic of China and internationally. Formed in 2004, and headed by CEO Wei Zhang, the company size now stands at 589 people and with the company’s market cap sitting at HKD HK$1.98B, it falls under the small-cap category.
434’s stock is currently floating at around -57% beneath its actual worth of ¥7.12, at a price of HK$3.04, based on its expected future cash flows. The discrepancy signals an opportunity to buy low. In addition to this, 434’s PE ratio is currently around 6.9x while its Software peer level trades at, 21.66x implying that relative to other stocks in the industry, you can buy 434’s shares at a cheaper price. 434 is also in great financial shape, as short-term assets amply cover upcoming and long-term liabilities. 434 has zero debt on its books as well, meaning it has no long term debt obligations to worry about. More detail on Boyaa Interactive International here.