3 SEHK Stocks That May Be Trading Below Estimated Value In August 2024

The Hong Kong market has shown resilience amid global economic uncertainties, with the Hang Seng Index gaining 0.85% recently despite broader concerns about deflationary pressures in China. As investors navigate these volatile conditions, identifying undervalued stocks can offer potential opportunities for growth and stability. In this article, we will explore three SEHK stocks that may be trading below their estimated value in August 2024.

Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong

Name	Current Price	Fair Value (Est)	Discount (Est)
Best Pacific International Holdings (SEHK:2111)	HK$2.22	HK$4.35	48.9%
Bosideng International Holdings (SEHK:3998)	HK$3.90	HK$6.74	42.2%
ANTA Sports Products (SEHK:2020)	HK$68.15	HK$135.64	49.8%
BYD Electronic (International) (SEHK:285)	HK$29.35	HK$53.10	44.7%
Shanghai INT Medical Instruments (SEHK:1501)	HK$28.45	HK$55.95	49.1%
Pacific Textiles Holdings (SEHK:1382)	HK$1.62	HK$2.85	43.1%
WuXi XDC Cayman (SEHK:2268)	HK$18.92	HK$37.54	49.6%
iDreamSky Technology Holdings (SEHK:1119)	HK$2.23	HK$4.20	46.9%
Weimob (SEHK:2013)	HK$1.20	HK$2.18	45%
MicroPort CardioFlow Medtech (SEHK:2160)	HK$0.74	HK$1.37	46.1%

Click here to see the full list of 33 stocks from our Undervalued SEHK Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

Swire Properties (SEHK:1972)

Overview: Swire Properties Limited, with a market cap of HK$81.78 billion, develops, owns, and operates mixed-use commercial properties in Hong Kong, Mainland China, the United States, and internationally.

Operations: The company's revenue segments include Property Investment (HK$14.39 billion), Hotels (HK$945 million), and Property Trading (HK$119 million).

Estimated Discount To Fair Value: 25.4%

Swire Properties, trading at HK$13.98, is significantly undervalued based on discounted cash flow analysis with a fair value estimate of HK$18.74. Despite a drop in net income to HK$1.80 billion for H1 2024 from HK$2.22 billion last year, the company announced an interim dividend of HKD 0.34 per share and may initiate a $1.50 billion share repurchase program, highlighting strong cash flows and potential for future growth in earnings forecasted at 25% annually over the next three years.

• The analysis detailed in our Swire Properties growth report hints at robust future financial performance.
• Click here to discover the nuances of Swire Properties with our detailed financial health report.

Bosideng International Holdings (SEHK:3998)

Overview: Bosideng International Holdings Limited operates in the apparel industry in the People’s Republic of China with a market cap of HK$42.82 billion.

Operations: The company's revenue segments include Down Apparels (CN¥19.54 billion), Ladieswear Apparels (CN¥819.80 million), Diversified Apparels (CN¥235.33 million), and Original Equipment Manufacturing (OEM) Management (CN¥2.70 billion).

Estimated Discount To Fair Value: 42.2%

Bosideng International Holdings is trading at HK$3.90, significantly below its fair value estimate of HK$6.74, indicating it is highly undervalued based on discounted cash flow analysis. The company reported strong earnings growth of 43.7% over the past year with net income rising to CNY 3.07 billion from CNY 2.14 billion a year ago and has forecasted annual revenue growth (11.2%) above the Hong Kong market average (7.4%).

• Our comprehensive growth report raises the possibility that Bosideng International Holdings is poised for substantial financial growth.
• Take a closer look at Bosideng International Holdings' balance sheet health here in our report.

Techtronic Industries (SEHK:669)

Overview: Techtronic Industries Company Limited designs, manufactures, and markets power tools, outdoor power equipment, and floorcare and cleaning products across North America, Europe, and internationally with a market cap of approximately HK$178.58 billion.

Operations: The company's revenue segments comprise $13.23 billion from Power Equipment and $965.09 million from Floorcare & Cleaning products.

Estimated Discount To Fair Value: 33.7%

Techtronic Industries, trading at HK$97.45, is significantly undervalued with an estimated fair value of HK$147.08 based on discounted cash flow analysis. The company reported half-year sales of US$7.31 billion and net income of US$550.37 million, reflecting solid earnings growth from the previous year. Analysts forecast annual profit growth at 15.3%, outpacing the Hong Kong market average of 11.3%. Recent leadership changes and a share repurchase program further enhance its investment appeal based on cash flows.

• Insights from our recent growth report point to a promising forecast for Techtronic Industries' business outlook.
• Click here and access our complete balance sheet health report to understand the dynamics of Techtronic Industries.

Turning Ideas Into Actions

• Click here to access our complete index of 33 Undervalued SEHK Stocks Based On Cash Flows.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Curious About Other Options?

• 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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