Undervalued companies are those that trade at a price lower than their actual values, such as Oriental Explorer Holdings and China Display Optoelectronics Technology 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.

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 market cap of HKD HK$442.80M, it falls under the small-cap category.

430’s shares are currently trading at -76% below its actual level of $0.68, at a price tag of HK$0.16, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. In terms of relative valuation, 430’s PE ratio is trading at around 2.52x while its Capital Markets peer level trades at, 14.64x meaning that relative to its comparable set of companies, you can buy 430’s shares at a cheaper price. 430 is also in great financial shape, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. Finally, its debt relative to equity is 45.29%, which has been dropping for the last couple of years demonstrating its capacity to reduce its debt obligations year on year. Interested in Oriental Explorer Holdings? Find out more here.

China Display Optoelectronics Technology Holdings Limited (SEHK:334)

China Display Optoelectronics Technology Holdings Limited, an investment holding company, engages in the research, development, manufacture, distribution, and sale of liquid crystal display modules for mobile phones and tablets in Hong Kong, China, and South Korea. Established in 2004, and currently headed by CEO Jian Li, the company currently employs 3,073 people and with the company’s market cap sitting at HKD HK$1.75B, it falls under the small-cap group.

334’s shares are currently hovering at around -75% beneath its actual worth of ¥3.41, at the market price of HK$0.84, based on its expected future cash flows. The mismatch signals a potential chance to invest in 334 at a discounted price. Also, 334’s PE ratio is trading at around 8.76x against its its Tech peer level of, 9.93x meaning that relative to its competitors, we can invest in 334 at a lower price. 334 is also strong in terms of its financial health, with short-term assets covering liabilities in the near future as well as in the long run.