Companies, such as Fullsun International Holdings Group, trading at a market price below their true values are considered to be undervalued. Smart investors can make money from this discrepancy by buying these shares, because they believe the current market prices will eventually move towards their true value. If you’re looking for capital gains in your next investment, I suggest you take a look at my list of potentially undervalued stocks.

Fullsun International Holdings Group Co., Limited (SEHK:627)

Fullsun International Holdings Group Co., Limited, through its subsidiary, Hunan Fullsun Group Co., Ltd., engages in the development of residential properties for the mid-end market in Changsha. Fullsun International Holdings Group was established in 2000 and has a market cap of HKD HK$62.50K, putting it in the small-cap category.

627’s stock is currently floating at around -100% under its actual value of ¥10416.67, at a price tag of HK$1.25, according to my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. Also, 627’s PE ratio is currently around 0.00076x while its Real Estate peer level trades at, 7.04x indicating that relative to its comparable set of companies, we can buy 627’s stock at a cheaper price today. 627 is also strong financially, with near-term assets able to cover upcoming and long-term liabilities.

Continue research on Fullsun International Holdings Group here.

Natural Beauty Bio-Technology Limited (SEHK:157)

Natural Beauty Bio-Technology Limited, an investment holding company, manufactures and sells skin care, beauty, aroma-therapeutic, and health supplements and make-up products under the Natural Beauty brand. Started in 1976, and now run by Wen-Chung Hsiao, the company currently employs 538 people and with the company’s market capitalisation at HKD HK$1.20B, we can put it in the small-cap category.

157’s stock is currently floating at around -52% beneath its value of $1.26, at a price tag of HK$0.60, 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 157’s PE ratio is currently around 11.4x compared to its Personal Products peer level of, 23.26x indicating that relative to its comparable set of companies, you can buy 157’s shares at a cheaper price. 157 is also in good financial health, as short-term assets amply cover upcoming and long-term liabilities. 157 has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Continue research on Natural Beauty Bio-Technology here.

CITIC Telecom International Holdings Limited (SEHK:1883)

CITIC Telecom International Holdings Limited, an investment holding company, provides telecommunications services worldwide. Founded in 1997, and currently lead by Zhenhui Lin, the company provides employment to 2,464 people and has a market cap of HKD HK$8.22B, putting it in the mid-cap group.

1883’s shares are now floating at around -49% lower than its true value of $4.5, at a price tag of HK$2.31, based on my discounted cash flow model. This mismatch indicates a chance to invest in 1883 at a discounted price. Moreover, 1883’s PE ratio stands at around 9.28x against its its Telecom peer level of, 13.04x indicating that relative to its comparable company group, you can purchase 1883’s stock for a lower price right now. 1883 is also a financially robust company, with short-term assets covering liabilities in the near future as well as in the long run.

Continue research on CITIC Telecom International Holdings here.

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.