Yahoo Finance Kuaishou Technology And 2 Other SEHK Stocks That May Be Trading Below Their Estimated True Value
Amidst a backdrop of fluctuating global markets, the Hong Kong stock exchange has mirrored this volatility, showing notable declines in key indices such as the Hang Seng. In such an environment, identifying stocks that may be undervalued becomes particularly crucial, as these could present opportunities for investors looking for potential amidst the uncertainty.
Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong
Name | Current Price | Fair Value (Est) | Discount (Est) |
Plover Bay Technologies (SEHK:1523) | HK$3.10 | HK$5.72 | 45.8% |
Kuaishou Technology (SEHK:1024) | HK$52.20 | HK$98.81 | 47.2% |
Gaush Meditech (SEHK:2407) | HK$14.00 | HK$26.16 | 46.5% |
Zijin Mining Group (SEHK:2899) | HK$16.54 | HK$29.15 | 43.3% |
Innovent Biologics (SEHK:1801) | HK$38.15 | HK$67.13 | 43.2% |
Melco International Development (SEHK:200) | HK$5.85 | HK$11.38 | 48.6% |
REPT BATTERO Energy (SEHK:666) | HK$14.40 | HK$27.25 | 47.2% |
Zhaojin Mining Industry (SEHK:1818) | HK$13.64 | HK$25.11 | 45.7% |
Zylox-Tonbridge Medical Technology (SEHK:2190) | HK$10.78 | HK$19.06 | 43.5% |
CGN Mining (SEHK:1164) | HK$2.71 | HK$4.86 | 44.3% |
Let's dive into some prime choices out of from the screener
Kuaishou Technology
Overview: Kuaishou Technology operates as an investment holding company in China, offering services such as live streaming and online marketing, with a market capitalization of approximately HK$226.26 billion.
Operations: The company generates revenue primarily from domestic sources, totaling CN¥114.72 billion, and a smaller portion from overseas activities, amounting to CN¥2.94 billion.
Estimated Discount To Fair Value: 47.2%
Kuaishou Technology, with a current share price of HK$52.2, is trading significantly below our estimated fair value of HK$98.81, indicating potential undervaluation based on cash flows. Recent corporate actions include a substantial share repurchase program valued at HKD 16 billion and amendments to company bylaws enhancing operational flexibility. Financially, Kuaishou has transitioned from a loss to posting a net income of CNY 4,119 million in Q1 2024, with analysts projecting strong earnings growth and favorable comparisons against industry peers.
China Resources Mixc Lifestyle Services
Overview: China Resources Mixc Lifestyle Services Limited operates as an investment holding company, offering property management and commercial operational services across the People’s Republic of China, with a market capitalization of approximately HK$64.14 billion.
Operations: The company generates revenue through residential property management services, which contributed CN¥9.60 billion, and commercial operational and property management services, totaling CN¥5.17 billion.
Estimated Discount To Fair Value: 39.1%
China Resources Mixc Lifestyle Services, priced at HK$28.1, appears undervalued with our fair value estimate at HK$46.16, reflecting a significant discount. The company's earnings have grown by 32.8% over the past year and are expected to increase by 17.54% annually, outpacing the Hong Kong market's 11.7%. Additionally, its revenue growth forecast of 16.9% also exceeds the local market average of 7.8%. Recent corporate developments include a dividend increase and executive changes which could impact governance and operational efficiency moving forward.
Weimob
Overview: Weimob Inc. is an investment holding company that offers digital commerce and marketing services in the People's Republic of China, with a market capitalization of approximately HK$4.86 billion.
Operations: The company generates revenue primarily through two segments: Merchant Solutions at CN¥878.28 million and Subscription Solutions at CN¥1.35 billion.
Estimated Discount To Fair Value: 12.8%
Weimob, trading at HK$1.58, is positioned below the calculated fair value of HK$1.81, indicating potential undervaluation based on cash flows. Despite a highly volatile share price recently, its revenue growth forecast of 12.7% per year surpasses the Hong Kong market average of 7.8%. However, shareholder dilution occurred over the past year and return on equity is expected to remain low at 7.4% in three years. Recent activities include a follow-on equity offering raising HK$313.01 million and amendments to company bylaws enhancing governance structures.
The growth report we've compiled suggests that Weimob's future prospects could be on the up.
Click here to discover the nuances of Weimob with our detailed financial health report.
Taking Advantage
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SEHK:1024SEHK:1209 and SEHK:2013.
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