Flavor Of The Month: Henan Jinma Energy And More

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A stock that you can buy at a price below what it is worth is considered undervalued. This is the case for Henan Jinma Energy and China Titans Energy Technology Group. 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.

Henan Jinma Energy Company Limited (SEHK:6885)

Henan Jinma Energy Company Limited, together with its subsidiaries, operates in the coking chemical industry in the People’s Republic of China. Formed in 2003, and run by CEO , the company size now stands at 1,361 people and with the stock’s market cap sitting at HKD HK$2.02B, it comes under the mid-cap group.

6885’s stock is currently hovering at around -83% below its value of ¥22.41, at a price of HK$3.77, based on my discounted cash flow model. This mismatch signals an opportunity to buy 6885 shares at a discount. Additionally, 6885’s PE ratio is around 2.49x relative to its Metals and Mining peer level of, 12.83x suggesting that relative to its competitors, you can buy 6885’s shares at a cheaper price. 6885 is also a financially robust company, with short-term assets covering liabilities in the near future as well as in the long run.

Continue research on Henan Jinma Energy here.

SEHK:6885 PE PEG Gauge Jun 13th 18
SEHK:6885 PE PEG Gauge Jun 13th 18

China Titans Energy Technology Group Co., Limited (SEHK:2188)

China Titans Energy Technology Group Co., Limited, an investment holding company, engages in the research, development, manufacture, and sale of power electric products and equipment in the People’s Republic of China. Formed in 1992, and currently lead by Wei An, the company provides employment to 534 people and with the company’s market capitalisation at HKD HK$906.55M, we can put it in the small-cap category.

2188’s shares are now hovering at around -77% less than its actual level of ¥4.3, at a price of HK$0.98, according to my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Also, 2188’s PE ratio is around 4.52x relative to its Electrical peer level of, 12.4x suggesting that relative to its competitors, you can buy 2188 for a cheaper price. 2188 is also strong financially, with near-term assets able to cover upcoming and long-term liabilities.

More on China Titans Energy Technology Group here.

SEHK:2188 PE PEG Gauge Jun 13th 18
SEHK:2188 PE PEG Gauge Jun 13th 18

Tianjin Tianbao Energy Co., Ltd. (SEHK:1671)

Tianjin Tianbao Energy Co., Ltd. generates and supplies power to the Tianjin Electric Power Company. Started in 1992, and headed by CEO Cheng Xing, the company employs 71 people and with the market cap of HKD HK$71.36M, it falls under the small-cap group.

1671’s shares are now trading at -95% less than its intrinsic level of ¥32.89, at a price of HK$1.61, based on my discounted cash flow model. This mismatch signals an opportunity to buy 1671 shares at a discount. What’s even more appeal is that 1671’s PE ratio stands at around 5.02x compared to its Electric Utilities peer level of, 14.51x suggesting that relative to its comparable set of companies, you can purchase 1671’s stock for a lower price right now. 1671 is also a financially robust company, as short-term assets amply cover upcoming and long-term liabilities. 1671 has zero debt on its books as well, meaning it has no long term debt obligations to worry about. More on Tianjin Tianbao Energy here.

SEHK:1671 PE PEG Gauge Jun 13th 18
SEHK:1671 PE PEG Gauge Jun 13th 18

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.

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