In This Article:
As global markets continue to navigate a complex economic landscape, the Hong Kong market has shown resilience with the Hang Seng Index rising by 1.99%. Amid this backdrop, identifying undervalued stocks presents an intriguing opportunity for investors looking to capitalize on potential growth. In this article, we will explore Innovent Biologics and two other SEHK stocks that are currently trading below their estimated value.
Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Best Pacific International Holdings (SEHK:2111) | HK$2.19 | HK$4.35 | 49.7% |
| Bosideng International Holdings (SEHK:3998) | HK$3.92 | HK$6.75 | 41.9% |
| ANTA Sports Products (SEHK:2020) | HK$69.10 | HK$135.53 | 49% |
| BYD Electronic (International) (SEHK:285) | HK$30.30 | HK$53.34 | 43.2% |
| Inspur Digital Enterprise Technology (SEHK:596) | HK$3.30 | HK$5.69 | 42% |
| Pacific Textiles Holdings (SEHK:1382) | HK$1.53 | HK$2.85 | 46.4% |
| Shanghai INT Medical Instruments (SEHK:1501) | HK$28.25 | HK$56.22 | 49.8% |
| iDreamSky Technology Holdings (SEHK:1119) | HK$2.18 | HK$4.15 | 47.5% |
| Vobile Group (SEHK:3738) | HK$1.48 | HK$2.69 | 44.9% |
| Ping An Healthcare and Technology (SEHK:1833) | HK$10.00 | HK$17.05 | 41.3% |
We'll examine a selection from our screener results.
Innovent Biologics
Overview: Innovent Biologics, Inc. is a biopharmaceutical company that develops and commercializes monoclonal antibodies and other drug assets for oncology, ophthalmology, autoimmune, cardiovascular, and metabolic diseases in China with a market cap of HK$71.61 billion.
Operations: The company generates revenue of CN¥6.21 billion from its biotechnology segment.
Estimated Discount To Fair Value: 33.9%
Innovent Biologics is trading at HK$43.95, significantly below its estimated fair value of HK$66.52, suggesting it may be undervalued based on cash flows. Despite recent shareholder dilution, analysts forecast a 50.78% annual earnings growth and expect the company to become profitable within three years. Innovent's revenue is projected to grow at 21.2% per year, outpacing the Hong Kong market average of 7.4%. Recent approval for Dupert® (fulzerasib) in China could bolster future cash flows by addressing unmet medical needs in advanced NSCLC patients with KRAS G12C mutations.
Sunny Optical Technology (Group)
Overview: Sunny Optical Technology (Group) Company Limited designs, researches, develops, manufactures, and sells optical products and scientific instruments with a market cap of HK$53.09 billion.