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Companies that are recently trading at a market price lower than their real values include A.Plus Group Holdings and Chanhigh Holdings. 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.
A.Plus Group Holdings Limited (SEHK:8251)
A.Plus Group Holdings Limited, an investment holding company, provides financial printing services under the A.Plus brand in Hong Kong. Formed in 2002, and currently lead by Wing Kong Fong, the company size now stands at 93 people and with the company’s market capitalisation at HKD HK$248.00M, we can put it in the small-cap group.
8251’s shares are currently trading at -60% lower than its real value of $1.56, at the market price of HK$0.62, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. Moreover, 8251’s PE ratio is trading at 6.96x while its Commercial Services peer level trades at, 20.65x implying that relative to its comparable company group, 8251 can be bought at a cheaper price right now. 8251 is also in good financial health, with short-term assets covering liabilities in the near future as well as in the long run. 8251 has zero debt on its books as well, meaning it has no long term debt obligations to worry about. More on A.Plus Group Holdings here.
Chanhigh Holdings Limited (SEHK:2017)
Chanhigh Holdings Limited, an investment holding company, provides municipal landscape and works construction services in the People’s Republic of China. Established in 2016, and now led by CEO Yonghui Peng, the company size now stands at 289 people and with the market cap of HKD HK$946.31M, it falls under the small-cap stocks category.
2017’s stock is currently floating at around -92% less than its intrinsic value of ¥19.18, at the market price of HK$1.53, based on its expected future cash flows. This mismatch indicates a chance to invest in 2017 at a discounted price. Also, 2017’s PE ratio stands at around 5.15x against its its Construction peer level of, 10.14x meaning that relative to its peers, we can invest in 2017 at a lower price. 2017 is also a financially healthy company, with short-term assets covering liabilities in the near future as well as in the long run.
More detail on Chanhigh Holdings here.
Shenglong Splendecor International Limited (SEHK:8481)
Shenglong Splendecor International Limited engages in the research and development, manufacture, and sale of decorative printing materials products. Formed in 1993, and currently run by Yingming Sheng, the company employs 328 people and with the company’s market capitalisation at HKD HK$220.00M, we can put it in the small-cap stocks category.