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Bank of Tianjin and West China Cement 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.
Bank of Tianjin Co., Ltd. (SEHK:1578)
Bank of Tianjin Co., Ltd. provides banking products and services in China. Started in 1996, and now run by Liguo Sun, the company employs 6,441 people and with the market cap of HKD HK$28.47B, it falls under the large-cap stocks category.
1578’s stock is now hovering at around -55% below its intrinsic level of ¥10.32, at a price tag of HK$4.69, based on its expected future cash flows. The divergence signals an opportunity to buy 1578 shares at a low price. In terms of relative valuation, 1578’s PE ratio is currently around 5.05x against its its Banks peer level of, 7.02x suggesting that relative to its competitors, 1578’s stock can be bought at a cheaper price. 1578 is also strong financially, as short-term assets amply cover upcoming and long-term liabilities.
More detail on Bank of Tianjin here.
West China Cement Limited (SEHK:2233)
West China Cement Limited, an investment holding company, manufactures and sells cement and cement products in Western China. Established in 1991, and run by CEO Weiping Ma, the company employs 4,398 people and has a market cap of HKD HK$7.66B, putting it in the mid-cap stocks category.
2233’s shares are currently hovering at around -57% under its true value of ¥3.31, at a price tag of HK$1.41, based on my discounted cash flow model. This difference in price and value gives us a chance to buy low. Moreover, 2233’s PE ratio is around 8.68x while its Basic Materials peer level trades at, 12.25x suggesting that relative to its comparable set of companies, you can purchase 2233’s stock for a lower price right now. 2233 is also a financially robust company, as current assets can cover liabilities in the near term and over the long run. It’s debt-to-equity ratio of 56.42% has been falling for the last couple of years signalling 2233’s ability to pay down its debt. Continue research on West China Cement here.
Best Pacific International Holdings Limited (SEHK:2111)
Best Pacific International Holdings Limited, together with its subsidiaries, manufactures, trades in, and sells lingerie materials. Established in 2003, and now led by CEO Haitao Zhang, the company size now stands at 6,879 people and has a market cap of HKD HK$4.21B, putting it in the mid-cap stocks category.