Companies with shares trading at a market price below what they are actually worth, such as China Pioneer Pharma Holdings and Easy Repay Finance & Investment, are deemed undervalued. There’s a few ways you can measure the value of a company – you can forecast how much money it will make in the future and base your valuation off of this, or you can look around at its peers of similar size and industry to roughly estimate what it should be worth. Below, I’ve created a list of companies that compare favourably in all criteria based on their most recent financial data, making them potentially good investments.

China Pioneer Pharma Holdings Limited (SEHK:1345)

China Pioneer Pharma Holdings Limited, an investment holding company, markets, promotes, and sells pharmaceutical products and medical devices in the People’s Republic of China, South East Asia, Europe, and Africa. Established in 1996, and currently lead by Mengjun Zhu, the company employs 340 people and with the company’s market capitalisation at HKD HK$3.10B, we can put it in the mid-cap group.

1345’s stock is currently hovering at around -73% lower than its intrinsic value of ¥9.08, at the market price of HK$2.43, based on its expected future cash flows. This discrepancy signals a potential opportunity to buy 1345 shares at a low price. In addition to this, 1345’s PE ratio is around 9.05x compared to its Healthcare peer level of, 26.14x indicating that relative to other stocks in the industry, you can buy 1345’s shares at a cheaper price. 1345 is also robust in terms of financial health, as short-term assets amply cover upcoming and long-term liabilities. The stock’s debt-to-equity ratio of 4.74% has been dropping for the past few years demonstrating 1345’s ability to reduce its debt obligations year on year. Interested in China Pioneer Pharma Holdings? Find out more here.

Easy Repay Finance & Investment Limited (SEHK:8079)

Easy Repay Finance & Investment Limited engages in money lending, financial instruments and quoted shares investment, and retail and wholesale businesses in Hong Kong and Macau. The company provides employment to 105 people and with the company’s market capitalisation at HKD HK$120.39M, we can put it in the small-cap stocks category.

8079’s shares are now hovering at around -56% below its true value of $1.26, at a price of HK$0.55, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. In addition to this, 8079’s PE ratio is around 6.05x relative to its Consumer Finance peer level of, 8.28x meaning that relative to its peers, you can purchase 8079’s stock for a lower price right now. 8079 is also a financially healthy company, as current assets can cover liabilities in the near term and over the long run. The stock’s debt-to-equity ratio of 1.61% has been falling for the past few years signifying 8079’s capacity to pay down its debt. Interested in Easy Repay Finance & Investment? Find out more here.

CCID Consulting Company Limited (SEHK:8235)

CCID Consulting Company Limited provides consulting services in the People’s Republic of China. The company provides employment to 255 people and with the market cap of HKD HK$182.00M, it falls under the small-cap stocks category.

8235’s stock is now trading at -66% under its actual value of ¥0.78, at the market price of HK$0.26, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. What’s even more appeal is that 8235’s PE ratio is trading at 11.61x compared to its IT peer level of, 17.48x suggesting that relative to its competitors, we can buy 8235’s stock at a cheaper price today. 8235 is also a financially robust company, with near-term assets able to cover upcoming and long-term liabilities. 8235 has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Dig deeper into CCID Consulting here.

Or create your own list by filtering SEHK companies based on fundamentals such as intrinsic discount, health score and future outlook using this free stock screener.

For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.