3 Chinese Stocks Estimated To Be Trading At Discounts Of Up To 37%
Reviewed by Simply Wall St
As China's central bank continues to implement stimulus measures, Chinese equities have shown resilience with the Shanghai Composite Index and CSI 300 both posting gains. In this environment, identifying undervalued stocks can be a strategic move for investors seeking potential opportunities in a market buoyed by supportive monetary policies.
Top 10 Undervalued Stocks Based On Cash Flows In China
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Shenzhen Lifotronic Technology (SHSE:688389) | CN¥16.35 | CN¥31.74 | 48.5% |
| Dongfang Electronics (SZSE:000682) | CN¥11.41 | CN¥21.35 | 46.6% |
| Range Intelligent Computing Technology Group (SZSE:300442) | CN¥32.82 | CN¥58.97 | 44.3% |
| Beijing Konruns PharmaceuticalLtd (SHSE:603590) | CN¥24.09 | CN¥46.03 | 47.7% |
| Anhui Huaheng Biotechnology (SHSE:688639) | CN¥38.83 | CN¥73.81 | 47.4% |
| Guangdong Skychem Technology (SHSE:688603) | CN¥85.80 | CN¥170.47 | 49.7% |
| Lancy (SZSE:002612) | CN¥15.84 | CN¥28.46 | 44.3% |
| Guangdong Fenghua Advanced Technology (Holding) (SZSE:000636) | CN¥16.48 | CN¥32.10 | 48.7% |
| Yangmei ChemicalLtd (SHSE:600691) | CN¥2.21 | CN¥4.10 | 46.1% |
| Jiangsu Chuanzhiboke Education Technology (SZSE:003032) | CN¥10.38 | CN¥19.22 | 46% |
Here's a peek at a few of the choices from the screener.
Sunstone Development (SHSE:603612)
Overview: Sunstone Development Co., Ltd. focuses on the research, development, production, and sales of prebaked carbon anodes for the aluminum industry both in China and internationally, with a market capitalization of CN¥7.92 billion.
Operations: The company generates revenue primarily from the research, development, production, and sales of prebaked carbon anodes for the aluminum industry in both domestic and international markets.
Estimated Discount To Fair Value: 32.7%
Sunstone Development Co., Ltd. is trading at CNY 14.65, significantly below its estimated fair value of CNY 21.76, suggesting it may be undervalued based on cash flows. Despite a decline in sales to CNY 9,919.19 million for the nine months ending September 2024, the company turned a net income of CNY 216.61 million from a previous loss and is forecasted to grow earnings by over 80% annually and revenue by 23.6%, outpacing the market average.
- According our earnings growth report, there's an indication that Sunstone Development might be ready to expand.
- Dive into the specifics of Sunstone Development here with our thorough financial health report.
Shandong Weigao Orthopaedic Device (SHSE:688161)
Overview: Shandong Weigao Orthopaedic Device Co., Ltd. operates in the medical device industry, focusing on orthopaedic products, with a market cap of approximately CN¥12.05 billion.
Operations: The company's revenue is primarily derived from its medical products segment, amounting to CN¥1.23 billion.
Estimated Discount To Fair Value: 37%
Shandong Weigao Orthopaedic Device is trading at CN¥30.25, below its estimated fair value of CN¥47.99, indicating potential undervaluation based on cash flows. While earnings are expected to grow significantly at 38.4% annually, recent financials show a decline in sales and net income compared to last year. Despite lower profit margins, the company completed a share buyback program worth CN¥79.96 million, which could enhance shareholder value in the long term.
- Upon reviewing our latest growth report, Shandong Weigao Orthopaedic Device's projected financial performance appears quite optimistic.
- Click here and access our complete balance sheet health report to understand the dynamics of Shandong Weigao Orthopaedic Device.
Beijing Easpring Material TechnologyLTD (SZSE:300073)
Overview: Beijing Easpring Material Technology Co., Ltd. is a company involved in the production and development of battery materials, with a market cap of CN¥22.55 billion.
Operations: Unfortunately, the provided text does not contain specific revenue segment data for Beijing Easpring Material Technology Co., Ltd.
Estimated Discount To Fair Value: 21.1%
Beijing Easpring Material Technology is trading at CN¥44.52, significantly below its estimated fair value of CN¥56.43, highlighting potential undervaluation based on cash flows. Despite recent declines in sales and net income, with nine-month figures showing a drop to CNY 5.53 billion from CNY 12.54 billion last year, earnings are forecast to grow substantially at 28.8% annually over the next three years, surpassing the broader Chinese market growth expectations.
- Our earnings growth report unveils the potential for significant increases in Beijing Easpring Material TechnologyLTD's future results.
- Navigate through the intricacies of Beijing Easpring Material TechnologyLTD with our comprehensive financial health report here.
Taking Advantage
- Unlock our comprehensive list of 101 Undervalued Chinese Stocks Based On Cash Flows by clicking here.
- Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
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Looking For Alternative Opportunities?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
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.
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About SHSE:603612
Sunstone Development
Engages in the research and development, production, and sales of prebaked carbon anodes for the aluminum industry in China and internationally.
Undervalued with high growth potential.
