February Undervalued Stock Opportunities

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Oriental Explorer Holdings and China Financial Services Holdings are companies that are currently trading below what they’re actually worth. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.

Oriental Explorer Holdings Limited (SEHK:430)

Oriental Explorer Holdings Limited, an investment holding company, engages in the property investment activities in Hong Kong. The company employs 12 people and with the stock’s market cap sitting at HKD HK$378.00M, it comes under the small-cap stocks category.

430’s shares are now trading at -78% less than its true level of $0.65, at the market price of $0.14, based on its expected future cash flows. The mismatch signals a potential chance to invest in 430 at a discounted price. In terms of relative valuation, 430’s PE ratio is around 2.2x against its its capital markets peer level of 14.3x, meaning that relative to other stocks in the industry, 430 can be bought at a cheaper price right now. 430 is also strong financially, with short-term assets covering liabilities in the near future as well as in the long run. It’s debt-to-equity ratio of 45% has been diminishing over the past couple of years signifying its capacity to pay down its debt. Interested in Oriental Explorer Holdings? Find out more here.

SEHK:430 PE PEG Gauge Feb 14th 18
SEHK:430 PE PEG Gauge Feb 14th 18

China Financial Services Holdings Limited (SEHK:605)

China Financial Services Holdings Limited, an investment holding company, provides diversified financing services in the People’s Republic of China. The company currently employs 211 people and with the market cap of HKD HK$2.80B, it falls under the mid-cap stocks category.

605’s stock is now floating at around -44% under its actual worth of $1.16, at a price tag of $0.65, based on its expected future cash flows. This mismatch indicates a potential opportunity to buy low. Moreover, 605’s PE ratio is currently around 7.4x compared to its consumer finance peer level of 8.1x, suggesting that relative to other stocks in the industry, you can buy 605 for a cheaper price. 605 is also robust in terms of financial health, with near-term assets able to cover upcoming and long-term liabilities.

Dig deeper into China Financial Services Holdings here.

SEHK:605 PE PEG Gauge Feb 14th 18
SEHK:605 PE PEG Gauge Feb 14th 18

Lee and Man Paper Manufacturing Limited (SEHK:2314)

Lee and Man Paper Manufacturing Limited, an investment holding company, manufactures and trades in packaging papers, pulps, and tissue papers in the People’s Republic of China and Vietnam. Started in 1994, and currently lead by Man Bun Lee, the company now has 7,200 employees and with the market cap of HKD HK$36.14B, it falls under the large-cap stocks category.