3 Chinese Stocks Estimated To Be Trading At Discounts Of 11.4% To 42.5%

In recent weeks, China's stock market has experienced a significant rally following the announcement of robust stimulus measures aimed at revitalizing its economy. This surge in investor sentiment presents an opportune moment to explore stocks that may be trading at attractive discounts. Identifying undervalued stocks in such a dynamic environment involves looking for companies with strong fundamentals that are temporarily mispriced by the market.

Top 10 Undervalued Stocks Based On Cash Flows In China

Name	Current Price	Fair Value (Est)	Discount (Est)
JinGuan Electric (SHSE:688517)	CN¥14.82	CN¥29.01	48.9%
Sinomine Resource Group (SZSE:002738)	CN¥36.54	CN¥70.90	48.5%
Arctech Solar Holding (SHSE:688408)	CN¥83.96	CN¥158.79	47.1%
Zhejiang Huahai Pharmaceutical (SHSE:600521)	CN¥19.59	CN¥37.02	47.1%
Neusoft (SHSE:600718)	CN¥10.25	CN¥19.45	47.3%
Zhejiang Great Shengda PackagingLtd (SHSE:603687)	CN¥7.11	CN¥14.16	49.8%
Jiangsu Hualan New Pharmaceutical MaterialLtd (SZSE:301093)	CN¥24.74	CN¥46.97	47.3%
Crystal Growth & Energy EquipmentLtd (SHSE:688478)	CN¥29.28	CN¥56.37	48.1%
China Kings Resources GroupLtd (SHSE:603505)	CN¥29.46	CN¥55.74	47.1%
Thunder Software TechnologyLtd (SZSE:300496)	CN¥52.55	CN¥104.23	49.6%

Click here to see the full list of 113 stocks from our Undervalued Chinese Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Xiamen Amoytop Biotech (SHSE:688278)

Overview: Xiamen Amoytop Biotech Co., Ltd. manufactures, markets, and sells recombinant protein drugs in China with a market cap of CN¥29.15 billion.

Operations: The company generates revenue primarily from its biologics segment, amounting to CN¥2.39 billion.

Estimated Discount To Fair Value: 42.5%

Xiamen Amoytop Biotech's earnings are expected to grow significantly over the next three years, with revenue forecasted to increase by 28% annually. The company is trading at CN¥71.65, well below its estimated fair value of CN¥124.69, indicating it is highly undervalued based on discounted cash flow analysis. Recent earnings reports show strong performance with net income rising to CN¥304.34 million from CN¥202.18 million year-over-year, supporting its growth potential and undervaluation thesis.

• The growth report we've compiled suggests that Xiamen Amoytop Biotech's future prospects could be on the up.
• Click here and access our complete balance sheet health report to understand the dynamics of Xiamen Amoytop Biotech.

Qi An Xin Technology Group (SHSE:688561)

Overview: Qi An Xin Technology Group Inc. is a cybersecurity company offering products and services to government, enterprises, and other institutions in China and internationally, with a market cap of CN¥21.75 billion.

Operations: Qi An Xin Technology Group Inc. generates revenue primarily from the Information Security Industry, amounting to CN¥5.74 billion.

Estimated Discount To Fair Value: 11.4%

Qi An Xin Technology Group's earnings are forecast to grow significantly over the next three years, with revenue expected to increase 13.3% annually. The stock is trading at CN¥31.88, below its estimated fair value of CN¥35.97, suggesting it is undervalued based on discounted cash flow analysis. Recent earnings reports show a net loss of CN¥820.41 million for H1 2024, an improvement from the previous year's loss of CN¥880.07 million, reflecting potential for recovery and growth despite recent volatility in share price.

• Our expertly prepared growth report on Qi An Xin Technology Group implies its future financial outlook may be stronger than recent results.
• Delve into the full analysis health report here for a deeper understanding of Qi An Xin Technology Group.

Haisco Pharmaceutical Group (SZSE:002653)

Overview: Haisco Pharmaceutical Group Co., Ltd. researches, develops, manufactures, and sells pharmaceuticals in China with a market cap of CN¥40.78 billion.

Operations: The company's revenue segments include the research, development, manufacturing, and sale of pharmaceuticals in China.

Estimated Discount To Fair Value: 33.9%

Haisco Pharmaceutical Group reported a strong first half of 2024, with net income rising to CNY 164.72 million from CNY 75.08 million a year ago and basic earnings per share increasing to CNY 0.1481 from CNY 0.0679. The stock is trading at CN¥36.96, significantly below its estimated fair value of CN¥55.89 based on discounted cash flow analysis, indicating it is undervalued despite lower-than-ideal dividend coverage by earnings or free cash flows.

• Insights from our recent growth report point to a promising forecast for Haisco Pharmaceutical Group's business outlook.
• Take a closer look at Haisco Pharmaceutical Group's balance sheet health here in our report.

Make It Happen

• Dive into all 113 of the Undervalued Chinese Stocks Based On Cash Flows we have identified here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com