A stock that you can buy at a price below what it is worth is considered undervalued. This is the case for Beijing Capital Land and Times China Holdings. 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.
Beijing Capital Land Ltd. (SEHK:2868)
Beijing Capital Land Ltd., together with its subsidiaries, engages in real estate development and investment activities in the People’s Republic of China. Formed in 2002, and run by CEO Jun Tang, the company provides employment to 2,084 people and with the market cap of HKD HK$14.99B, it falls under the large-cap category.
2868’s shares are currently floating at around -68% less than its real value of ¥15.36, at a price of HK$4.95, based on its expected future cash flows. The mismatch signals a potential chance to invest in 2868 at a discounted price. Furthermore, 2868’s PE ratio is currently around 6x compared to its Real Estate peer level of, 8.16x indicating that relative to its comparable company group, 2868 can be bought at a cheaper price right now. 2868 also has a healthy balance sheet, with short-term assets covering liabilities in the near future as well as in the long run.
Interested in Beijing Capital Land? Find out more here.
Times China Holdings Limited (SEHK:1233)
Times China Holdings Limited, an investment holding company, operates as a property development company in the People’s Republic of China. Founded in 1999, and now run by Chiu Hung Shum, the company employs 6,641 people and with the company’s market capitalisation at HKD HK$18.15B, we can put it in the large-cap category.
1233’s stock is now trading at -89% lower than its true level of ¥94.17, at the market price of HK$9.90, based on my discounted cash flow model. The difference between value and price signals a potential opportunity to buy 1233 shares at a discount. Furthermore, 1233’s PE ratio is trading at 5.32x compared to its Real Estate peer level of, 8.16x indicating that relative to its comparable set of companies, 1233’s shares can be purchased for a lower price. 1233 is also in great financial shape, with near-term assets able to cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 119.12% has been reducing over the past couple of years signifying 1233’s ability to pay down its debt. Interested in Times China Holdings? Find out more here.