Companies, such as Shengjing Bank, are deemed to be undervalued because their shares are currently trading below 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.
Shengjing Bank Co., Ltd. (SEHK:2066)
Shengjing Bank Co., Ltd. provides banking products and services in the People’s Republic of China. Established in 1997, and headed by CEO Chunsheng Wang, the company provides employment to 4,925 people and with the company’s market cap sitting at HKD HK$37.45B, it falls under the large-cap group.
2066’s stock is currently hovering at around -64% below its true level of ¥17.76, at a price tag of ¥6.46, based on its expected future cash flows. The discrepancy signals an opportunity to buy low. Also, 2066’s PE ratio is around 4.6x compared to its banks peer level of 6.5x, suggesting that relative to other stocks in the industry, you can purchase 2066’s stock for a lower price right now. 2066 is also robust in terms of financial health, with near-term assets able to cover upcoming and long-term liabilities.
Continue research on Shengjing Bank here.
Ming Fai International Holdings Limited (SEHK:3828)
Ming Fai International Holdings Limited, an investment holding company, manufactures and supplies amenity products and accessories to internationally recognized or branded operators. Started in 2007, and run by CEO , the company size now stands at 3,800 people and with the stock’s market cap sitting at HKD HK$893.62M, it comes under the small-cap stocks category.
3828’s stock is currently floating at around -75% beneath its actual worth of $4.95, at a price of $1.23, based on my discounted cash flow model. The difference between value and price signals a potential opportunity to buy 3828 shares at a discount. Moreover, 3828’s PE ratio stands at 7.9x compared to its personal products peer level of 20.4x, meaning that relative to its competitors, we can invest in 3828 at a lower price. 3828 also has a healthy balance sheet, with current assets covering liabilities in the near term and over the long run. Finally, its debt relative to equity is 4%, which has been declining for the past few years indicating its capability to reduce its debt obligations year on year. Continue research on Ming Fai International Holdings here.
Guodian Technology & Environment Group Corporation Limited (SEHK:1296)
Guodian Technology & Environment Group Corporation Limited, together with its subsidiaries, provides environmental protection and energy conservation solutions, and renewable energy equipment manufacturing and solutions in the People’s Republic of China. Founded in 2001, and currently run by Jun Zhang, the company provides employment to 7,208 people and with the stock’s market cap sitting at HKD HK$3.46B, it comes under the mid-cap group.