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The Hong Kong market has been experiencing a period of uncertainty, with the Hang Seng Index retreating 2.28% recently due to mixed economic signals and investor sentiment. Despite these challenges, there are opportunities for discerning investors who focus on undervalued stocks that have strong fundamentals and potential for growth. In this article, we will explore three stocks listed on the SEHK that are estimated to be undervalued in July 2024.
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$40.50 | HK$76.51 | 47.1% |
| COSCO SHIPPING Energy Transportation (SEHK:1138) | HK$9.38 | HK$16.44 | 42.9% |
| Beauty Farm Medical and Health Industry (SEHK:2373) | HK$16.70 | HK$32.98 | 49.4% |
| Shanghai INT Medical Instruments (SEHK:1501) | HK$28.25 | HK$49.09 | 42.4% |
| Mobvista (SEHK:1860) | HK$1.92 | HK$3.70 | 48.2% |
| WuXi XDC Cayman (SEHK:2268) | HK$17.90 | HK$32.39 | 44.7% |
| AK Medical Holdings (SEHK:1789) | HK$4.32 | HK$8.09 | 46.6% |
| Q Technology (Group) (SEHK:1478) | HK$4.36 | HK$8.39 | 48% |
| MicroPort Scientific (SEHK:853) | HK$5.35 | HK$9.81 | 45.5% |
| Vobile Group (SEHK:3738) | HK$1.31 | HK$2.32 | 43.6% |
We're going to check out a few of the best picks from our screener tool.
Everest Medicines
Overview: Everest Medicines Limited is a biopharmaceutical company focused on discovering, licensing, developing, and commercializing therapies and vaccines for critical unmet medical needs in Greater China and other Asia Pacific markets, with a market cap of HK$6.27 billion.
Operations: The company generates revenue primarily from its pharmaceutical segment, which amounted to CN¥125.93 million.
Estimated Discount To Fair Value: 20.1%
Everest Medicines is trading 20.1% below its estimated fair value of HK$24.46, suggesting it may be undervalued based on cash flows. The company expects revenue to grow at 37.8% annually, significantly outpacing the Hong Kong market's 7.4%. Despite shareholder dilution over the past year, Everest is forecast to become profitable within three years and has shown strong earnings growth potential with a projected annual increase of 76.28%. Recent product approvals and clinical trial advancements further bolster its growth prospects.
ANTA Sports Products
Overview: ANTA Sports Products Limited, with a market cap of HK$198.57 billion, engages in the research and development, design, manufacturing, and marketing of shoes, apparel, and accessories in Mainland China, Hong Kong, Macao, and internationally.