Shenglong Splendecor International and BHCC Holding are stocks on my list that are potentially undervalued. This means their current share prices are trading well-below what the companies are actually worth. 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.
Shenglong Splendecor International Limited (SEHK:8481)
Shenglong Splendecor International Limited engages in the research and development, manufacture, and sale of decorative printing materials products. Established in 1993, and currently lead by Yingming Sheng, the company size now stands at 328 people and with the stock’s market cap sitting at HKD HK$215.00M, it comes under the small-cap category.
8481’s shares are now hovering at around -42% lower than its actual level of ¥0.74, at a price tag of ¥0.43, based on its expected future cash flows. This mismatch indicates a potential opportunity to buy low. In terms of relative valuation, 8481’s PE ratio is trading at around 8.2x compared to its commercial services peer level of 19x, meaning that relative to its peers, 8481’s stock can be bought at a cheaper price. 8481 is also a financially robust company, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.
Interested in Shenglong Splendecor International? Find out more here.
BHCC Holding Limited (SEHK:1552)
BHCC Holding Limited provides building and construction works in Singapore. Formed in 2003, and run by CEO Xinping Yang, the company currently employs 265 people and with the company’s market capitalisation at HKD HK$296.00M, we can put it in the small-cap stocks category.
1552’s stock is now floating at around -65% under its actual level of $1.06, at the market price of $0.37, based on its expected future cash flows. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. In addition to this, 1552’s PE ratio is trading at around 0.5x while its construction peer level trades at 9.3x, implying that relative to its comparable company group, 1552 can be bought at a cheaper price right now. 1552 is also a financially healthy company, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.
More on BHCC Holding here.
Megalogic Technology Holdings Limited (SEHK:8242)
Megalogic Technology Holdings Limited, an investment holding company, operates as a fabless semiconductor company primarily in the People’s Republic of China, Korea, Taiwan, Russia, and internationally. Formed in 2000, and headed by CEO Tak Wing Sung, the company employs 40 people and with the company’s market cap sitting at HKD HK$197.09M, it falls under the small-cap group.