In This Article:
Amid a global landscape where major indices like the Dow Jones and Nasdaq are reaching new highs, the Hong Kong stock market presents unique opportunities. As investors seek value in July 2024, understanding which stocks are potentially undervalued becomes crucial in navigating through varying economic signals and market conditions.
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$40.45 | HK$75.59 | 46.5% |
| China Resources Mixc Lifestyle Services (SEHK:1209) | HK$24.20 | HK$47.77 | 49.3% |
| China Cinda Asset Management (SEHK:1359) | HK$0.68 | HK$1.29 | 47.3% |
| West China Cement (SEHK:2233) | HK$1.16 | HK$2.15 | 46.1% |
| BYD (SEHK:1211) | HK$240.60 | HK$462.37 | 48% |
| Zhaojin Mining Industry (SEHK:1818) | HK$15.86 | HK$30.22 | 47.5% |
| Super Hi International Holding (SEHK:9658) | HK$14.14 | HK$25.95 | 45.5% |
| Vobile Group (SEHK:3738) | HK$1.23 | HK$2.31 | 46.8% |
| MicroPort Scientific (SEHK:853) | HK$5.31 | HK$9.66 | 45% |
| Zylox-Tonbridge Medical Technology (SEHK:2190) | HK$11.00 | HK$21.99 | 50% |
Let's dive into some prime choices out of from the screener.
iDreamSky Technology Holdings
Overview: iDreamSky Technology Holdings Limited is an investment holding company that operates a digital entertainment platform, publishing games through mobile apps and websites in the People’s Republic of China, with a market cap of HK$3.92 billion.
Operations: The company generates revenue primarily from its Game and Information Services segment, amounting to CN¥1.92 billion.
Estimated Discount To Fair Value: 36.4%
iDreamSky Technology Holdings is significantly undervalued based on cash flows, trading at HK$2.52 against a fair value estimate of HK$3.96. Its revenue growth is expected to outpace the Hong Kong market substantially, with a forecast increase of 29.8% per year compared to the market's 7.7%. Additionally, earnings are projected to surge, with profitability anticipated within three years and an impressive future return on equity of 24.8%. However, shareholder dilution has occurred over the past year.
Everest Medicines
Overview: Everest Medicines Limited is a biopharmaceutical company focused on the discovery, licensing, development, and commercialization of therapies and vaccines for unmet medical needs in Greater China and other Asia Pacific markets, with a market capitalization of approximately HK$6.40 billion.