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Stocks, such as Henan Jinma Energy, trading at a market price below their true values are considered to be undervalued. There’s a few ways you can measure the value of a company – you can forecast how much money it will make in the future and base your valuation off of this, or you can look around at its peers of similar size and industry to roughly estimate what it should be worth. Below, I’ve created a list of companies that compare favourably in all criteria based on their most recent financial data, making them potentially good investments.
Henan Jinma Energy Company Limited (SEHK:6885)
Henan Jinma Energy Company Limited operates in the coking chemical industry in the People’s Republic of China. Established in 2003, and now led by CEO , the company now has 1,361 employees and with the stock’s market cap sitting at HKD HK$528.14M, it comes under the small-cap group.
6885’s shares are now trading at -94% less than its actual worth of ¥62.07, at a price tag of HK$3.90, according to my discounted cash flow model. This mismatch indicates a chance to invest in 6885 at a discounted price. Also, 6885’s PE ratio stands at 2.54x relative to its Metals and Mining peer level of, 12.15x indicating that relative to other stocks in the industry, you can buy 6885 for a cheaper price. 6885 is also in great financial shape, with short-term assets covering liabilities in the near future as well as in the long run.
Interested in Henan Jinma Energy? Find out more here.
Poly Property Group Co., Limited (SEHK:119)
Poly Property Group Co., Limited, an investment holding company, engages in the property development, investment, and management activities in Hong Kong and the People’s Republic of China. The company currently employs 12175 people and with the market cap of HKD HK$14.61B, it falls under the large-cap stocks category.
119’s stock is currently hovering at around -57% beneath its real value of $9.21, at the market price of HK$3.99, according to my discounted cash flow model. The mismatch signals a potential chance to invest in 119 at a discounted price. Additionally, 119’s PE ratio is trading at around 5.93x against its its Real Estate peer level of, 7.9x meaning that relative to its peers, we can invest in 119 at a lower price. 119 is also in great financial shape, as short-term assets amply cover upcoming and long-term liabilities.
Interested in Poly Property Group? Find out more here.
China Lesso Group Holdings Limited (SEHK:2128)
China Lesso Group Holdings Limited, an investment holding company, manufactures and sells building materials and interior decoration products. The company provides employment to 10600 people and with the market cap of HKD HK$18.96B, it falls under the large-cap stocks category.