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Stocks, such as Golden Wheel Tiandi Holdings, 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.
Golden Wheel Tiandi Holdings Company Limited (SEHK:1232)
Golden Wheel Tiandi Holdings Company Limited, an investment holding company, owns, develops, and operates integrated commercial and residential properties in the People’s Republic of China. Formed in 1994, and currently lead by Kam Wong, the company size now stands at 537 people and with the stock’s market cap sitting at HKD HK$1.41B, it comes under the small-cap group.
1232’s stock is currently floating at around -86% beneath its real value of ¥5.72, at the market price of HK$0.78, 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 1232’s PE ratio is trading at 2.31x compared to its Real Estate peer level of, 7.05x suggesting that relative to its comparable set of companies, we can invest in 1232 at a lower price. 1232 is also in good financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.
Dig deeper into Golden Wheel Tiandi Holdings here.
A.Plus Group Holdings Limited (SEHK:8251)
A.Plus Group Holdings Limited, an investment holding company, provides financial printing services under the A.Plus brand in Hong Kong. Formed in 2002, and now led by CEO Wing Kong Fong, the company provides employment to 93 people and has a market cap of HKD HK$284.00M, putting it in the small-cap stocks category.
8251’s stock is now hovering at around -54% below its value of $1.56, at a price of HK$0.71, based on my discounted cash flow model. The divergence signals an opportunity to buy 8251 shares at a low price. Additionally, 8251’s PE ratio is around 7.98x against its its Commercial Services peer level of, 21.62x implying that relative to its competitors, we can buy 8251’s stock at a cheaper price today. 8251 is also strong in terms of its financial health, with current assets covering liabilities in the near term and over the long run. 8251 has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Continue research on A.Plus Group Holdings here.