Companies, such as Bank of Zhengzhou, trading at a market price below their true values are considered to be undervalued. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.

Bank of Zhengzhou Co., Ltd. (SEHK:6196)

Bank of Zhengzhou Co., Ltd. provides various banking products and services in the People’s Republic of China. Established in 1996, and run by CEO Xueqing Shen, the company currently employs 4,171 people and has a market cap of HKD HK$21.55B, putting it in the large-cap category.

6196’s shares are now floating at around -61% under its real value of ¥10.32, at a price tag of HK$4.05, based on my discounted cash flow model. The mismatch signals a potential chance to invest in 6196 at a discounted price. Furthermore, 6196’s PE ratio is currently around 4.03x relative to its Banks peer level of, 6.7x implying that relative to its peers, we can purchase 6196’s shares for cheaper. 6196 is also in great financial shape, with short-term assets covering liabilities in the near future as well as in the long run.

Continue research on Bank of Zhengzhou here.

Guodian Technology & Environment Group Corporation Limited (SEHK:1296)

Guodian Technology & Environment Group Corporation Limited, together with its subsidiaries, provides environmental protection and energy conservation solutions, and renewable energy equipment manufacturing and solutions in the People’s Republic of China. Formed in 2001, and currently lead by Jun Zhang, the company now has 7,208 employees and has a market cap of HKD HK$3.03B, putting it in the mid-cap stocks category.

1296’s shares are currently hovering at around -88% lower than its intrinsic level of ¥4.31, at the market price of HK$0.50, based on my discounted cash flow model. This difference in price and value gives us a chance to buy low. In addition to this, 1296’s PE ratio is trading at around 6.92x against its its Electrical peer level of, 12x indicating that relative to its comparable set of companies, you can buy 1296 for a cheaper price. 1296 is also a financially robust company, with short-term assets covering liabilities in the near future as well as in the long run.

More on Guodian Technology & Environment Group here.

In Construction Holdings Limited (SEHK:1500)

In Construction Holdings Limited, an investment holding company, engages in construction and engineering activities in Hong Kong. Founded in 1996, and run by CEO Pak Man Lau, the company currently employs 43 people and with the stock’s market cap sitting at HKD HK$448.20M, it comes under the small-cap group.

1500’s shares are currently trading at -72% beneath its actual level of $1.93, at a price tag of HK$0.54, according to my discounted cash flow model. This discrepancy gives us a chance to invest in 1500 at a discount. What’s even more appeal is that 1500’s PE ratio stands at 6.48x relative to its Construction peer level of, 13.21x suggesting that relative to its comparable set of companies, 1500 can be bought at a cheaper price right now. 1500 is also in good financial health, as current assets can cover liabilities in the near term and over the long run. 1500 also has a miniscule amount of debt on its balance sheet, which gives it headroom to grow and financial flexibility. Dig deeper into In Construction Holdings here.

For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.