In This Article:
Companies that are recently trading at a market price lower than their real values include Emperor Capital Group and Changshouhua Food. There’s a few ways you can value a company. The most popular methods include discounting the company’s cash flows it is expected to create in the future, or comparing its price to its peers or the value of its assets. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good investments.
Emperor Capital Group Limited (SEHK:717)
Emperor Capital Group Limited, an investment holding company, provides a range of financial services in Hong Kong, the United States, and internationally. Founded in 1993, and now run by Daisy Yeung, the company size now stands at 183 people and with the stock’s market cap sitting at HKD HK$4.04B, it comes under the mid-cap group.
717’s shares are currently trading at -41% less than its actual value of $1.01, at a price tag of HK$0.60, based on my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Moreover, 717’s PE ratio stands at around 6.02x relative to its Capital Markets peer level of, 12.76x suggesting that relative to its competitors, we can purchase 717’s shares for cheaper. 717 is also a financially robust company, as current assets can cover liabilities in the near term and over the long run.
Interested in Emperor Capital Group? Find out more here.
Changshouhua Food Company Limited (SEHK:1006)
Changshouhua Food Company Limited, an investment holding company, produces and sells branded and non-branded corn oil primarily in the People’s Republic of China. Founded in 2009, and headed by CEO Mingxing Wang, the company provides employment to 4,568 people and with the market cap of HKD HK$2.17B, it falls under the mid-cap stocks category.
1006’s stock is now floating at around -75% lower than its actual level of ¥14.84, at the market price of HK$3.78, according to my discounted cash flow model. The discrepancy signals an opportunity to buy low. In addition to this, 1006’s PE ratio is around 5.95x while its Food peer level trades at, 15.14x suggesting that relative to other stocks in the industry, you can buy 1006’s shares at a cheaper price. 1006 also has a healthy balance sheet, as current assets can cover liabilities in the near term and over the long run.
Dig deeper into Changshouhua Food here.
Perfect Shape Beauty Technology Limited (SEHK:1830)
Perfect Shape Beauty Technology Limited, an investment holding company, provides slimming and beauty services in Hong Kong and Macau, and the People’s Republic of China. Established in 2003, and now led by CEO Kong Au-Yeung, the company employs 1,229 people and has a market cap of HKD HK$1.21B, putting it in the small-cap category.