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As global markets experience fluctuations, the Hong Kong market has seen its benchmark Hang Seng Index decline significantly, reflecting waning optimism about economic stimulus measures from Beijing. In this environment of uncertainty, identifying undervalued stocks can be crucial for investors seeking opportunities that may offer potential value relative to their intrinsic worth.
Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| BYD Electronic (International) (SEHK:285) | HK$32.40 | HK$63.19 | 48.7% |
| Giant Biogene Holding (SEHK:2367) | HK$51.70 | HK$96.49 | 46.4% |
| Laopu Gold (SEHK:6181) | HK$160.10 | HK$308.52 | 48.1% |
| Kuaishou Technology (SEHK:1024) | HK$47.45 | HK$88.46 | 46.4% |
| Yadea Group Holdings (SEHK:1585) | HK$12.28 | HK$23.20 | 47.1% |
| Shanghai INT Medical Instruments (SEHK:1501) | HK$28.30 | HK$55.81 | 49.3% |
| CSC Financial (SEHK:6066) | HK$8.95 | HK$17.58 | 49.1% |
| Hangzhou SF Intra-city Industrial (SEHK:9699) | HK$10.48 | HK$19.50 | 46.3% |
| Innovent Biologics (SEHK:1801) | HK$44.60 | HK$80.73 | 44.8% |
| AK Medical Holdings (SEHK:1789) | HK$4.43 | HK$8.32 | 46.7% |
We're going to check out a few of the best picks from our screener tool.
China Resources Mixc Lifestyle Services
Overview: China Resources Mixc Lifestyle Services Limited is an investment holding company that offers property management and commercial operational services in the People's Republic of China, with a market capitalization of approximately HK$72.93 billion.
Operations: The company generates revenue through its property management business, which accounts for CN¥10.22 billion, and its commercial management business, contributing CN¥5.71 billion.
Estimated Discount To Fair Value: 41%
China Resources Mixc Lifestyle Services is trading at HK$31.95, significantly below its estimated fair value of HK$54.13, suggesting it may be undervalued based on cash flows. The company reported robust earnings growth of 33.1% over the past year and forecasts a 14.6% annual increase in earnings, outpacing the Hong Kong market average of 12.1%. Recent interim results showed improved sales and net income, enhancing its financial position amidst dividend increases and special payouts.
Giant Biogene Holding
Overview: Giant Biogene Holding Co., Ltd. is an investment holding company involved in the research, development, manufacture, and sale of bioactive material-based beauty and health products in China, with a market cap of HK$52.18 billion.