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The Hong Kong market has shown resilience despite global economic uncertainties, with the Hang Seng Index gaining 2.14% recently. As investors seek value amid fluctuating indices and mixed corporate earnings, identifying undervalued stocks becomes crucial for capitalizing on potential growth opportunities. In this article, we will explore three SEHK stocks estimated to be trading below their fair value, starting with Weimob.
Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Bosideng International Holdings (SEHK:3998) | HK$3.75 | HK$6.78 | 44.7% |
| Zhaojin Mining Industry (SEHK:1818) | HK$11.94 | HK$21.43 | 44.3% |
| WuXi XDC Cayman (SEHK:2268) | HK$19.74 | HK$39.28 | 49.7% |
| Pacific Textiles Holdings (SEHK:1382) | HK$1.48 | HK$2.85 | 48% |
| Shanghai INT Medical Instruments (SEHK:1501) | HK$28.25 | HK$56.25 | 49.8% |
| Hangzhou SF Intra-city Industrial (SEHK:9699) | HK$11.04 | HK$19.87 | 44.4% |
| Innovent Biologics (SEHK:1801) | HK$43.15 | HK$80.36 | 46.3% |
| United Company RUSAL International (SEHK:486) | HK$2.35 | HK$4.25 | 44.7% |
| DPC Dash (SEHK:1405) | HK$69.95 | HK$135.33 | 48.3% |
| Weimob (SEHK:2013) | HK$1.28 | HK$2.56 | 49.9% |
Underneath we present a selection of stocks filtered out by our screen.
Weimob
Overview: Weimob Inc., an investment holding company with a market cap of HK$3.94 billion, provides digital commerce and media services in the People’s Republic of China.
Operations: The company generates revenue from two main segments: Merchant Solutions (CN¥754.71 million) and Subscription Solutions (CN¥1.13 billion).
Estimated Discount To Fair Value: 49.9%
Weimob Inc. is trading at 49.9% below its estimated fair value of HK$2.56 per share, making it highly undervalued based on discounted cash flow analysis. Despite recent shareholder dilution and a low forecasted return on equity, the company’s revenue is expected to grow faster than the Hong Kong market at 16.5% annually, with earnings projected to increase significantly by 113.49% per year, becoming profitable within three years. Recent private placements raised $90 million in gross proceeds further bolstering its financial position.
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According our earnings growth report, there's an indication that Weimob might be ready to expand.
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Dive into the specifics of Weimob here with our thorough financial health report.
Shenzhou International Group Holdings
Overview: Shenzhou International Group Holdings Limited is an investment holding company that manufactures, prints, and sells knitwear products in Mainland China, the European Union, the United States, Japan, and other international markets with a market cap of HK$94.03 billion.