July 2024 Insight Into Three SEHK Stocks Estimated Below Market Value

In This Article:

Amidst a global atmosphere of cautious optimism, the Hong Kong market has recently shown signs of volatility, reflecting broader economic uncertainties and localized challenges. In this context, identifying stocks that are potentially undervalued becomes a critical strategy for investors looking to capitalize on discrepancies between market price and intrinsic value.

Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong

Name

Current Price

Fair Value (Est)

Discount (Est)

China Resources Mixc Lifestyle Services (SEHK:1209)

HK$25.35

HK$48.68

47.9%

China Cinda Asset Management (SEHK:1359)

HK$0.66

HK$1.29

48.9%

Zijin Mining Group (SEHK:2899)

HK$16.62

HK$31.53

47.3%

United Energy Group (SEHK:467)

HK$0.31

HK$0.57

45.6%

WuXi XDC Cayman (SEHK:2268)

HK$16.64

HK$31.99

48%

Super Hi International Holding (SEHK:9658)

HK$13.96

HK$26.08

46.5%

Genscript Biotech (SEHK:1548)

HK$8.63

HK$15.92

45.8%

Melco International Development (SEHK:200)

HK$5.25

HK$10.40

49.5%

Vobile Group (SEHK:3738)

HK$1.19

HK$2.32

48.8%

AK Medical Holdings (SEHK:1789)

HK$4.37

HK$7.87

44.5%

Click here to see the full list of 41 stocks from our Undervalued SEHK Stocks Based On Cash Flows screener.

Here we highlight a subset of our preferred stocks from the screener

AK Medical Holdings

Overview: AK Medical Holdings Limited is an investment holding company that specializes in designing, developing, producing, and marketing orthopedic joint implants and related products both in China and internationally, with a market capitalization of approximately HK$4.90 billion.

Operations: The company generates revenue primarily through the sale of orthopedic implants, with CN¥993.59 million from China and CN¥152.49 million from the United Kingdom.

Estimated Discount To Fair Value: 44.5%

AK Medical Holdings is notably undervalued based on cash flows, trading at HK$4.37 against a fair value of HK$7.87, reflecting a significant discount. Analyst consensus suggests an 83.5% potential price increase, supported by earnings expected to grow at 26% annually—outpacing the Hong Kong market's 11.3%. Despite recent dividend cuts and board changes, its robust forecasted revenue growth of 22.3% annually further underscores its appeal as an undervalued asset in the region.

SEHK:1789 Discounted Cash Flow as at Jul 2024
SEHK:1789 Discounted Cash Flow as at Jul 2024

ESR Group

Overview: ESR Group Limited operates in logistics real estate development, leasing, and management across regions including Hong Kong, China, Japan, South Korea, Australia, New Zealand, Southeast Asia, India and Europe with a market capitalization of approximately HK$44.24 billion.