Changan Minsheng APLL Logistics and Yida China Holdings are two of the stocks I have identified as undervalued. This means their current share prices are trading at levels less than what the companies are actually worth. 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.

Changan Minsheng APLL Logistics Co., Ltd. (SEHK:1292)

Changan Minsheng APLL Logistics Co., Ltd., together with its subsidiaries, provides supply chain management services for automobiles and automobile raw materials, components, and parts in the People’s Republic of China. Started in 2001, and currently headed by CEO Jinggang Shi, the company provides employment to 7,948 people and with the market cap of HKD HK$820.04M, it falls under the small-cap stocks category.

1292’s stock is now hovering at around -83% below its true value of ¥30.26, at a price tag of HK$5.06, based on its expected future cash flows. The mismatch signals a potential chance to invest in 1292 at a discounted price. Also, 1292’s PE ratio stands at around 5.4x against its its Logistics peer level of, 13.71x meaning that relative to its competitors, you can purchase 1292’s stock for a lower price right now. 1292 is also robust in terms of financial health, with near-term assets able to cover upcoming and long-term liabilities. 1292 also has a miniscule amount of debt on its balance sheet, which gives it headroom to grow and financial flexibility. More on Changan Minsheng APLL Logistics here.

Yida China Holdings Limited (SEHK:3639)

Yida China Holdings Limited, an investment holding company, develops and operates business parks in the People’s Republic of China. Started in 1988, and currently headed by CEO Xiuwen Jiang, the company now has 1,873 employees and with the company’s market capitalisation at HKD HK$6.98B, we can put it in the mid-cap group.

3639’s shares are now hovering at around -44% below its real value of ¥4.81, at the market price of HK$2.70, based on its expected future cash flows. This mismatch signals an opportunity to buy 3639 shares at a discount. What’s even more appeal is that 3639’s PE ratio is trading at 5.68x relative to its Real Estate peer level of, 7.49x indicating that relative to its comparable set of companies, we can buy 3639’s stock at a cheaper price today. 3639 also has a healthy balance sheet, with short-term assets covering liabilities in the near future as well as in the long run. The stock’s debt-to-equity ratio of 152.44% has been dropping over time, demonstrating its capacity to pay down its debt. More on Yida China Holdings here.