Chinese Exchange Value Stocks Trading Below Estimated Worth In September 2024
Reviewed by Simply Wall St
In the wake of China's recent robust stimulus measures, the Shanghai Composite Index and CSI 300 have seen significant gains, reflecting renewed investor confidence. As global markets respond to these developments, identifying undervalued stocks in China becomes increasingly pertinent for investors looking to capitalize on potential growth opportunities. A good stock in this context is one that not only trades below its estimated worth but also stands to benefit from the economic boost provided by these new stimulus policies.
Top 10 Undervalued Stocks Based On Cash Flows In China
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| HangzhouS MedTech (SHSE:688581) | CN¥55.90 | CN¥108.77 | 48.6% |
| Xiamen Amoytop Biotech (SHSE:688278) | CN¥63.25 | CN¥124.84 | 49.3% |
| Chengdu Guibao Science & TechnologyLtd (SZSE:300019) | CN¥12.42 | CN¥24.73 | 49.8% |
| Beijing ConST Instruments Technology (SZSE:300445) | CN¥15.27 | CN¥29.72 | 48.6% |
| Suzhou Shihua New Material Technology (SHSE:688093) | CN¥16.25 | CN¥32.10 | 49.4% |
| China Kings Resources GroupLtd (SHSE:603505) | CN¥27.93 | CN¥55.47 | 49.7% |
| GemPharmatech (SHSE:688046) | CN¥12.71 | CN¥25.20 | 49.6% |
| Appotronics (SHSE:688007) | CN¥14.13 | CN¥27.41 | 48.5% |
| Shandong Weigao Orthopaedic Device (SHSE:688161) | CN¥24.37 | CN¥47.95 | 49.2% |
| Ningbo Jifeng Auto Parts (SHSE:603997) | CN¥12.75 | CN¥25.36 | 49.7% |
Let's take a closer look at a couple of our picks from the screened companies.
Jiangsu Zhongtian Technology (SHSE:600522)
Overview: Jiangsu Zhongtian Technology Co., Ltd. produces and sells electrical machinery and equipment for various sectors including communications, electric power, marine, new energy, and marine engineering construction with a market cap of CN¥48.50 billion.
Operations: The company generates revenue from producing and selling electrical machinery and equipment across sectors such as communications, electric power, marine, new energy, and marine engineering construction.
Estimated Discount To Fair Value: 41.7%
Jiangsu Zhongtian Technology is trading at CNY 14.28, significantly below its estimated fair value of CNY 24.48, indicating it is undervalued based on cash flows. Despite a decrease in net income to CNY 1,459.71 million for H1 2024, the company's earnings are forecast to grow annually by 26.19% over the next three years, outpacing the Chinese market's expected growth rate of 23%. The stock also offers a reliable dividend yield of 1.54%.
- Upon reviewing our latest growth report, Jiangsu Zhongtian Technology's projected financial performance appears quite optimistic.
- Click here to discover the nuances of Jiangsu Zhongtian Technology with our detailed financial health report.
Zhongji Innolight (SZSE:300308)
Overview: Zhongji Innolight Co., Ltd. researches, develops, produces, and sells optical communication transceiver modules and optical devices in China with a market cap of CN¥147.59 billion.
Operations: The company's revenue segments include CN¥5.23 billion from optical communication transceiver modules and CN¥2.47 billion from optical devices in China.
Estimated Discount To Fair Value: 42.2%
Zhongji Innolight's recent earnings report shows significant growth, with net income rising to CNY 2.36 billion for H1 2024 from CNY 613.75 million a year ago. The stock is trading at CNY 133.6, well below its estimated fair value of CNY 231.08, making it highly undervalued based on cash flows. Despite high share price volatility, the company's revenue and earnings are forecast to grow substantially faster than the market over the next three years.
- According our earnings growth report, there's an indication that Zhongji Innolight might be ready to expand.
- Delve into the full analysis health report here for a deeper understanding of Zhongji Innolight.
Jiangsu Hoperun Software (SZSE:300339)
Overview: Jiangsu Hoperun Software Co., Ltd. operates as a software company providing products, solutions, and services based on new generation information technology across China, Japan, Southeast Asia, North America, and internationally with a market cap of CN¥24.29 billion.
Operations: The company generates revenue from various segments including software products, IT solutions, and technology services across China, Japan, Southeast Asia, North America, and other international markets.
Estimated Discount To Fair Value: 40.4%
Jiangsu Hoperun Software's recent earnings report shows solid growth, with net income rising to CNY 84.76 million for H1 2024 from CNY 79.67 million a year ago. Trading at CNY 31.14, it is significantly undervalued compared to its estimated fair value of CNY 52.25. Revenue and earnings are forecast to grow faster than the market, although past high volatility and lower future return on equity (9.7%) warrant caution in assessing its long-term potential based on cash flows.
- In light of our recent growth report, it seems possible that Jiangsu Hoperun Software's financial performance will exceed current levels.
- Take a closer look at Jiangsu Hoperun Software's balance sheet health here in our report.
Taking Advantage
- Delve into our full catalog of 118 Undervalued Chinese Stocks Based On Cash Flows 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.
- Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.
Ready For A Different Approach?
- 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 SZSE:300339
Jiangsu Hoperun Software
Operates as a software company that provides products, solutions, and services based on new generation information technology in China, Japan, Southeast Asia, North America, and internationally.
High growth potential with excellent balance sheet.
