In This Article:
As global markets navigate the complexities of rising oil prices and geopolitical tensions, Hong Kong's Hang Seng Index has shown resilience with a notable 10.2% gain in recent weeks. In this environment, identifying undervalued stocks can offer potential opportunities for investors looking to capitalize on market fluctuations and economic shifts.
Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Giant Biogene Holding (SEHK:2367) | HK$50.85 | HK$97.57 | 47.9% |
| MicroPort NeuroScientific (SEHK:2172) | HK$9.97 | HK$18.90 | 47.3% |
| Kuaishou Technology (SEHK:1024) | HK$50.90 | HK$89.32 | 43% |
| Yadea Group Holdings (SEHK:1585) | HK$12.90 | HK$23.02 | 44% |
| Semiconductor Manufacturing International (SEHK:981) | HK$27.20 | HK$54.03 | 49.7% |
| Shanghai INT Medical Instruments (SEHK:1501) | HK$29.40 | HK$56.20 | 47.7% |
| Hangzhou SF Intra-city Industrial (SEHK:9699) | HK$11.08 | HK$19.77 | 43.9% |
| CSC Financial (SEHK:6066) | HK$10.08 | HK$17.81 | 43.4% |
| Digital China Holdings (SEHK:861) | HK$2.96 | HK$5.82 | 49.1% |
| AK Medical Holdings (SEHK:1789) | HK$4.74 | HK$8.38 | 43.4% |
Here's a peek at a few of the choices from the screener.
DPC Dash
Overview: DPC Dash Ltd, with a market cap of HK$10.33 billion, operates a chain of fast-food restaurants in the People’s Republic of China through its subsidiaries.
Operations: The company's revenue primarily comes from its fast-food restaurant operations in the People’s Republic of China, generating CN¥3.72 billion.
Estimated Discount To Fair Value: 41.5%
DPC Dash Ltd, recently added to the S&P Global BMI Index, demonstrates potential as an undervalued stock based on cash flows. The company reported half-year sales of CNY 2.04 billion, up from CNY 1.38 billion the previous year, with net income rising to CNY 10.91 million. Despite significant insider selling and a low forecasted return on equity of 8.4%, DPC Dash trades at HK$79.2, below its estimated fair value of HK$135.43 according to discounted cash flow analysis.
-
According our earnings growth report, there's an indication that DPC Dash might be ready to expand.
-
Unlock comprehensive insights into our analysis of DPC Dash stock in this financial health report.
Yunkang Group
Overview: Yunkang Group Limited is a medical operation service provider in the People's Republic of China with a market cap of HK$5.39 billion.
Operations: The company generates revenue from its Diagnostic Services segment, which amounts to CN¥794.58 million.
Estimated Discount To Fair Value: 33.3%
Yunkang Group, despite recent challenges including a drop from the S&P Global BMI Index and reporting a net loss of CNY 126.13 million for the first half of 2024, is considered undervalued based on cash flow analysis. Trading at HK$9, below its estimated fair value of HK$13.49, it is forecasted to grow revenue by 10% annually and become profitable in three years, although its return on equity remains low at 2.5%.