July 2024 Insights Into Three SEHK Stocks Estimated To Be Undervalued

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Amid a backdrop of mixed global economic signals, the Hong Kong market has shown resilience, with the Hang Seng Index posting modest gains. This stability in an otherwise uncertain environment suggests potential opportunities in undervalued stocks within the region. In assessing what makes a stock particularly appealing during these times, investors might look for companies that demonstrate strong fundamentals such as healthy balance sheets and potential for sustainable growth, which may have been overlooked by the broader market.

Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong

Name

Current Price

Fair Value (Est)

Discount (Est)

China Cinda Asset Management (SEHK:1359)

HK$0.66

HK$1.29

48.9%

United Energy Group (SEHK:467)

HK$0.31

HK$0.57

46%

West China Cement (SEHK:2233)

HK$1.11

HK$2.16

48.6%

Super Hi International Holding (SEHK:9658)

HK$13.82

HK$26.06

47%

Shanghai INT Medical Instruments (SEHK:1501)

HK$26.10

HK$48.26

45.9%

Zijin Mining Group (SEHK:2899)

HK$17.52

HK$32.07

45.4%

Genscript Biotech (SEHK:1548)

HK$8.84

HK$16.26

45.6%

AK Medical Holdings (SEHK:1789)

HK$4.33

HK$7.96

45.6%

Vobile Group (SEHK:3738)

HK$1.17

HK$2.30

49.2%

Q Technology (Group) (SEHK:1478)

HK$3.81

HK$7.30

47.8%

Click here to see the full list of 43 stocks from our Undervalued SEHK Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener

COSCO SHIPPING Energy Transportation

Overview: COSCO SHIPPING Energy Transportation Co., Ltd. operates globally, specializing in the transportation of oil, liquefied natural gas (LNG), and chemicals, with a market capitalization of approximately HK$69.01 billion.

Operations: The company primarily generates revenue through the transportation of oil, liquefied natural gas (LNG), and chemicals.

Estimated Discount To Fair Value: 38.1%

COSCO SHIPPING Energy Transportation, priced at HK$9.6, is significantly undervalued with a fair value estimate of HK$15.51, reflecting a 38.1% discount. Despite its high debt levels and unstable dividend history, the company shows robust growth prospects with earnings expected to increase by 24.7% annually, outpacing the Hong Kong market average significantly. Recent corporate actions include reappointing auditors and amending company bylaws to enhance governance, alongside declaring a dividend of RMB 0.35 per share for 2023.

SEHK:1138 Discounted Cash Flow as at Jul 2024
SEHK:1138 Discounted Cash Flow as at Jul 2024

Global New Material International Holdings

Overview: Global New Material International Holdings Limited engages in the production and sale of pearlescent pigment, functional mica filler, and related products both domestically in the People’s Republic of China and internationally, with a market capitalization of approximately HK$5.17 billion.