Stock Analysis

Discover 3 Stocks Including Lingyi iTech (Guangdong) That May Be Trading Below Estimated Value

TWSE:3017
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As global markets continue to reach record highs, driven by domestic policy shifts and geopolitical developments, investors are increasingly on the lookout for opportunities that may be trading below their estimated value. In this environment of robust market activity, identifying undervalued stocks can be a strategic approach to potentially capitalize on discrepancies between current market prices and intrinsic values.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Shandong Bailong Chuangyuan Bio-Tech (SHSE:605016)CN¥16.64CN¥33.1649.8%
Pan African Resources (AIM:PAF)£0.3735£0.7549.9%
Sudarshan Chemical Industries (BSE:506655)₹1116.10₹2222.4249.8%
Iguatemi (BOVESPA:IGTI3)R$2.25R$4.4949.8%
Elekta (OM:EKTA B)SEK61.50SEK122.9550%
Adtraction Group (OM:ADTR)SEK38.40SEK76.4549.8%
Pluk Phak Praw Rak Mae (SET:OKJ)THB15.50THB30.8649.8%
Privia Health Group (NasdaqGS:PRVA)US$21.66US$43.1749.8%
Energy One (ASX:EOL)A$5.30A$10.5549.8%
Sands China (SEHK:1928)HK$20.40HK$40.5849.7%

Click here to see the full list of 891 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Lingyi iTech (Guangdong) (SZSE:002600)

Overview: Lingyi iTech (Guangdong) Company offers smart manufacturing services and solutions with a market cap of CN¥60.50 billion.

Operations: Revenue Segments (in millions of CN¥):

Estimated Discount To Fair Value: 11.5%

Lingyi iTech's recent financial performance shows increased sales of CNY 31.48 billion, but net income declined to CNY 1.41 billion, reflecting tighter profit margins at 3.9%. Despite this, the stock is trading at CN¥8.67, below its estimated fair value of CN¥9.79, offering a potential undervaluation based on cash flows. Forecasts suggest earnings growth of 28.5% annually over three years and revenue growth outpacing the Chinese market average.

SZSE:002600 Discounted Cash Flow as at Dec 2024
SZSE:002600 Discounted Cash Flow as at Dec 2024

Zhongji Innolight (SZSE:300308)

Overview: Zhongji Innolight Co., Ltd. is engaged in the research, development, production, and sale of optical communication transceiver modules and optical devices in China with a market cap of CN¥143.61 billion.

Operations: Zhongji Innolight generates revenue primarily from the development, production, and sale of optical communication transceiver modules and optical devices in China.

Estimated Discount To Fair Value: 33.7%

Zhongji Innolight's recent earnings report highlights significant revenue growth to CN¥17.31 billion from CN¥7.03 billion year-over-year, with net income rising to CN¥3.75 billion. Despite high volatility in share price, the stock is trading at CN¥130, considerably below its estimated fair value of CN¥195.94, indicating undervaluation based on cash flows. Forecasts predict robust annual earnings growth of 32.6%, surpassing market averages and signaling strong future performance potential despite past fluctuations.

SZSE:300308 Discounted Cash Flow as at Dec 2024
SZSE:300308 Discounted Cash Flow as at Dec 2024

Asia Vital Components (TWSE:3017)

Overview: Asia Vital Components Co., Ltd. is a company that provides thermal solutions globally, with a market cap of NT$267.17 billion.

Operations: The company's revenue segments include NT$72.11 billion from the Overseas Operating Department and NT$51.58 billion from the Integrated Management Division.

Estimated Discount To Fair Value: 27.2%

Asia Vital Components reported third-quarter sales of NT$19.06 billion, up from NT$15.77 billion year-over-year, with net income rising to NT$2.32 billion. The stock trades at NT$697, significantly below its fair value estimate of NT$957.14, highlighting undervaluation based on cash flows. Earnings are projected to grow annually by 30.3%, outpacing the Taiwan market average of 19.2%. A recent US$150 million syndicated loan aims to strengthen working capital and repay liabilities.

TWSE:3017 Discounted Cash Flow as at Dec 2024
TWSE:3017 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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