Top 3 Cheap Stocks For The Month

Companies that trade at market prices below their actual values, such as China Greenfresh Group and HKC (Holdings), are perceived to be undervalued. 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.

China Greenfresh Group Co., Ltd. (SEHK:6183)

China GreenFresh Group Co., Ltd., an investment holding company, engages in the cultivation and sale of fresh edible fungi products; and manufacture and sale of processed edible fungi products. Established in 1995, and run by CEO Songhui Zheng, the company currently employs 641 people and with the company’s market capitalisation at HKD HK$1.39B, we can put it in the small-cap category.

6183’s shares are currently hovering at around -72% less than its intrinsic level of ¥4.47, at the market price of HK$1.25, based on my discounted cash flow model. The divergence signals an opportunity to buy 6183 shares at a low price. Additionally, 6183’s PE ratio stands at 5.94x compared to its Food peer level of, 16.58x implying that relative to its peers, 6183’s stock can be bought at a cheaper price. 6183 is also a financially robust company, with near-term assets able to cover upcoming and long-term liabilities. 6183 also has a miniscule amount of debt on its balance sheet, which gives it headroom to grow and financial flexibility. Dig deeper into China Greenfresh Group here.

SEHK:6183 PE PEG Gauge Jun 4th 18
SEHK:6183 PE PEG Gauge Jun 4th 18

HKC (Holdings) Limited (SEHK:190)

HKC (Holdings) Limited, together with its subsidiaries, engages in the property development and investment, and renewable energy investment and operation businesses in the People’s Republic of China. The company now has 267 employees and with the company’s market cap sitting at HKD HK$4.07B, it falls under the mid-cap group.

190’s stock is currently floating at around -89% below its actual worth of $73.27, at the market price of HK$7.70, based on its expected future cash flows. This mismatch indicates a potential opportunity to buy low. In terms of relative valuation, 190’s PE ratio is trading at around 4.53x relative to its Real Estate peer level of, 7.27x indicating that relative to its peers, you can buy 190 for a cheaper price. 190 is also strong financially, as current assets can cover liabilities in the near term and over the long run. It’s debt-to-equity ratio of 18.94% has been diminishing for the past few years signifying its capacity to pay down its debt. Interested in HKC (Holdings)? Find out more here.

SEHK:190 PE PEG Gauge Jun 4th 18
SEHK:190 PE PEG Gauge Jun 4th 18

Orange Sky Golden Harvest Entertainment (Holdings) Limited (SEHK:1132)

Orange Sky Golden Harvest Entertainment (Holdings) Limited, an investment holding company, operates as an integrated film entertainment company. Established in 1970, and currently headed by CEO Yimin Mao, the company currently employs 394 people and with the company’s market capitalisation at HKD HK$1.40B, we can put it in the small-cap group.

1132’s shares are now floating at around -89% under its actual level of $4.52, at a price tag of HK$0.50, based on my discounted cash flow model. This difference in price and value gives us a chance to buy low. What’s even more appeal is that 1132’s PE ratio is trading at around 0.62x relative to its Media peer level of, 18.04x suggesting that relative to its comparable company group, we can buy 1132’s stock at a cheaper price today. 1132 is also a financially robust company, as current assets can cover liabilities in the near term and over the long run.

Dig deeper into Orange Sky Golden Harvest Entertainment (Holdings) here.

SEHK:1132 PE PEG Gauge Jun 4th 18
SEHK:1132 PE PEG Gauge Jun 4th 18

For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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