March Top Undervalued Stock

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Stocks recently deemed undervalued include A & S Group (Holdings) and China Zheshang Bank, as they trade at a market price below their true valuations. There’s a few ways you can value a company. The most popular methods include discounting the company’s cash flows it is expected to create in the future, or comparing its price to its peers or the value of its assets. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good investments.

A & S Group (Holdings) Limited (SEHK:1737)

A & S Group (Holdings) Limited, an investment holding company, provides air freight forwarding ground handling, and air cargo terminal operating services in Hong Kong. Formed in 2002, and currently run by , the company now has 1,095 employees and with the company’s market cap sitting at HKD HK$8.76K, it falls under the small-cap stocks category.

1737’s stock is now hovering at around -100% under its value of $16000, at the market price of HK$0.48, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. Additionally, 1737’s PE ratio is trading at 0.00026x relative to its Logistics peer level of, 17.35x suggesting that relative to its comparable company group, 1737 can be bought at a cheaper price right now. 1737 also has a healthy balance sheet, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.

More on A & S Group (Holdings) here.

SEHK:1737 PE PEG Gauge Mar 14th 18
SEHK:1737 PE PEG Gauge Mar 14th 18

China Zheshang Bank Co., Ltd (SEHK:2016)

China Zheshang Bank Co., Ltd. provides a range of banking products and services in the People’s Republic of China. Formed in 2004, and currently run by Xiaochun Liu, the company employs 12,304 people and with the market cap of HKD HK$86.57B, it falls under the large-cap stocks category.

2016’s shares are now trading at -52% beneath its value of ¥10.07, at a price tag of HK$4.82, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. In addition to this, 2016’s PE ratio is currently around 6.34x compared to its Banks peer level of, 7.18x implying that relative to its competitors, we can purchase 2016’s shares for cheaper. 2016 also has a healthy balance sheet, as short-term assets amply cover upcoming and long-term liabilities.

More detail on China Zheshang Bank here.

SEHK:2016 PE PEG Gauge Mar 14th 18
SEHK:2016 PE PEG Gauge Mar 14th 18

K. Wah International Holdings Limited (SEHK:173)

K. Wah International Holdings Limited, an investment holding company, engages in the property development and investment activities in Hong Kong, Mainland China, and Singapore. The company provides employment to 850 people and has a market cap of HKD HK$16.52B, putting it in the large-cap stocks category.