Stock Analysis

Hubei Wanrun New Energy TechnologyLtd And Two Other Stocks That May Be Trading Below Estimated Value

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As global markets continue to experience record highs, driven by a mix of geopolitical developments and domestic policy shifts, investors are increasingly looking for opportunities that may be undervalued amidst the broader market rally. In this environment, identifying stocks that are trading below their estimated value can offer potential advantages, as these investments might provide room for growth when market conditions stabilize or improve.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
NBT Bancorp (NasdaqGS:NBTB)US$50.12US$99.9349.8%
DO & CO (WBAG:DOC)€160.00€317.7849.6%
Stille (OM:STIL)SEK220.00SEK437.8149.7%
Mobvista (SEHK:1860)HK$8.00HK$15.9950%
Nidaros Sparebank (OB:NISB)NOK100.00NOK198.6249.7%
Shanghai INT Medical Instruments (SEHK:1501)HK$27.25HK$54.3149.8%
Charter Hall Group (ASX:CHC)A$15.72A$31.2249.6%
EQL Pharma (OM:EQL)SEK77.00SEK153.5849.9%
Hd Hyundai MipoLtd (KOSE:A010620)₩125600.00₩249514.8149.7%
Hesai Group (NasdaqGS:HSAI)US$8.18US$16.3049.8%

Click here to see the full list of 920 stocks from our Undervalued Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Hubei Wanrun New Energy TechnologyLtd (SHSE:688275)

Overview: Hubei Wanrun New Energy Technology Co., Ltd. (ticker: SHSE:688275) operates in the new energy sector, focusing on innovative technologies and solutions, with a market cap of CN¥7.30 billion.

Operations: The company generates revenue of CN¥7.03 billion from the production and sales of lithium-ion battery material products.

Estimated Discount To Fair Value: 41%

Hubei Wanrun New Energy Technology Ltd. is trading at CN¥59.28, significantly below its estimated fair value of CN¥100.5, suggesting it is undervalued based on discounted cash flow analysis. Despite recent volatility and a reported net loss of CN¥597.78 million for the nine months ended September 2024, the company is expected to become profitable within three years with revenue growth forecasted at 33.7% annually, outpacing the broader Chinese market's growth rate.

SHSE:688275 Discounted Cash Flow as at Dec 2024

Haisco Pharmaceutical Group (SZSE:002653)

Overview: Haisco Pharmaceutical Group Co., Ltd. is involved in the research, development, manufacturing, and sale of pharmaceuticals in China with a market cap of CN¥43.66 billion.

Operations: Haisco Pharmaceutical Group's revenue is generated through its activities in researching, developing, manufacturing, and selling pharmaceuticals within China.

Estimated Discount To Fair Value: 29.3%

Haisco Pharmaceutical Group's current trading price of CN¥39.36 is substantially below its fair value estimate of CN¥55.7, indicating it is undervalued based on cash flow analysis. The company reported significant revenue growth to CN¥2.75 billion for the nine months ending September 2024, up from CN¥2.38 billion a year prior, with net income rising to CN¥381.82 million from CN¥200.74 million, despite low dividend coverage by free cash flows and moderate return on equity projections.

SZSE:002653 Discounted Cash Flow as at Dec 2024

Bora Pharmaceuticals (TWSE:6472)

Overview: Bora Pharmaceuticals Co., LTD. is involved in the research, development, manufacturing, distribution, and sale of pharmaceuticals globally with a market cap of NT$88.87 billion.

Operations: The company's revenue is primarily derived from the Sales Operations Department at NT$14.08 billion and the CDMO Operations Department at NT$6.33 billion.

Estimated Discount To Fair Value: 39.4%

Bora Pharmaceuticals' current trading price of NT$860 is significantly below its estimated fair value of NT$1,419.83, indicating an undervaluation based on cash flow analysis. The company reported third-quarter sales of TWD 5.61 billion, up from TWD 3.08 billion a year ago, with net income increasing to TWD 1.45 billion from TWD 733 million. Despite high revenue growth forecasts and earnings expansion by 36% last year, debt coverage by operating cash flow remains weak.

TWSE:6472 Discounted Cash Flow as at Dec 2024

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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.

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