March Top Undervalued Companies

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Stocks recently deemed undervalued include Huajun Holdings and China Parenting Network Holdings, as they trade at a market price below their true valuations. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.

Huajun Holdings Limited (SEHK:00377)

Huajun Holdings Limited, an investment holding company, manufactures and sells multi-color packaging products, carton boxes, books, brochures, and other paper products in the People’s Republic of China, the United States, European countries, and internationally. Established in 1964, and currently run by Jiwei Wu, the company provides employment to 3,453 people and has a market cap of HKD HK$2.73B, putting it in the mid-cap category.

377’s shares are now floating at around -100% under its value of ¥625, at a price tag of HK$0.45, according to my discounted cash flow model. This discrepancy signals a potential opportunity to buy 377 shares at a low price. What’s even more appeal is that 377’s PE ratio is trading at 0.61x compared to its Packaging peer level of, 12.39x suggesting that relative to its peers, you can purchase 377’s stock for a lower price right now. 377 is also in great financial shape, with current assets covering liabilities in the near term and over the long run.

Dig deeper into Huajun Holdings here.

SEHK:00377 PE PEG Gauge Mar 8th 18
SEHK:00377 PE PEG Gauge Mar 8th 18

China Parenting Network Holdings Limited (SEHK:8361)

China Parenting Network Holdings Limited, an investment holding company, engages in the provision of marketing and promotional services through its online platform and e-commerce business in the People’s Republic of China. Started in 2005, and headed by CEO Li Cheng, the company now has 168 employees and with the market cap of HKD HK$492.32M, it falls under the small-cap category.

8361’s stock is now trading at -43% beneath its intrinsic level of ¥0.84, at the market price of HK$0.48, according to my discounted cash flow model. This difference in price and value gives us a chance to buy low. Moreover, 8361’s PE ratio stands at around 10.32x compared to its Internet peer level of, 24.17x indicating that relative to its competitors, 8361’s shares can be purchased for a lower price. 8361 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. 8361 also has a miniscule amount of debt on its balance sheet, which gives it headroom to grow and financial flexibility. More on China Parenting Network Holdings here.