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Peking University Resources (Holdings) and Easy Repay Finance & Investment are two of the stocks I have identified as undervalued. This means their current share prices are trading at levels less than what the companies are actually worth. 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.
Peking University Resources (Holdings) Company Limited (SEHK:618)
Peking University Resources (Holdings) Company Limited, together with its subsidiaries, distributes information products, and invests in and develops properties in the People’s Republic of China. The company size now stands at 1435 people and with the company’s market cap sitting at HKD HK$2.28B, it falls under the mid-cap category.
618’s shares are currently floating at around -96% below its value of ¥9.61, at a price of HK$0.35, according to my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. What’s even more appeal is that 618’s PE ratio stands at around 5.21x while its Electronic peer level trades at, 11.81x suggesting that relative to other stocks in the industry, 618’s stock can be bought at a cheaper price. 618 is also strong in terms of its financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.
More detail on Peking University Resources (Holdings) here.
Easy Repay Finance & Investment Limited (SEHK:8079)
Easy Repay Finance & Investment Limited engages in money lending, financial instruments and quoted shares investment, and retail and wholesale businesses in Hong Kong and Macau. The company employs 105 people and has a market cap of HKD HK$91.94M, putting it in the small-cap group.
8079’s stock is currently floating at around -65% less than its actual level of $1.2, at the market price of HK$0.42, based on my discounted cash flow model. The difference between value and price signals a potential opportunity to buy 8079 shares at a discount. Furthermore, 8079’s PE ratio is trading at 4.62x relative to its Consumer Finance peer level of, 7.82x indicating that relative to its competitors, you can purchase 8079’s stock for a lower price right now. 8079 is also in good financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. The stock’s debt-to-equity ratio of 1.61% has been declining over time, indicating 8079’s capability to reduce its debt obligations year on year. More on Easy Repay Finance & Investment here.