Exploring SEHK Stocks With Estimated Discounts Ranging From 12.4% To 40.1%

Amid a backdrop of global economic shifts and market realignments, the Hong Kong stock market has seen its fair share of fluctuations. As investors increasingly turn their focus towards value stocks in various markets, exploring undervalued stocks in Hong Kong could present opportunities for those looking to diversify and potentially capitalize on market discrepancies.

Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong

Name	Current Price	Fair Value (Est)	Discount (Est)
Giant Biogene Holding (SEHK:2367)	HK$40.35	HK$75.96	46.9%
China Cinda Asset Management (SEHK:1359)	HK$0.66	HK$1.29	48.8%
Super Hi International Holding (SEHK:9658)	HK$12.94	HK$25.78	49.8%
Shanghai INT Medical Instruments (SEHK:1501)	HK$27.65	HK$48.23	42.7%
BYD (SEHK:1211)	HK$238.40	HK$461.65	48.4%
Mobvista (SEHK:1860)	HK$1.91	HK$3.68	48.1%
Hangzhou SF Intra-city Industrial (SEHK:9699)	HK$10.50	HK$19.35	45.7%
AK Medical Holdings (SEHK:1789)	HK$4.55	HK$7.95	42.8%
Vobile Group (SEHK:3738)	HK$1.22	HK$2.31	47.2%
MicroPort Scientific (SEHK:853)	HK$5.08	HK$9.40	46%

Click here to see the full list of 38 stocks from our Undervalued SEHK Stocks Based On Cash Flows screener.

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

COSCO SHIPPING Energy Transportation (SEHK:1138)

Overview: COSCO SHIPPING Energy Transportation Co., Ltd. operates globally, specializing in the transportation of oil, liquefied natural gas (LNG), and chemicals, with a market capitalization of approximately HK$67.86 billion.

Operations: The company primarily generates its revenue from the transportation of oil, liquefied natural gas (LNG), and chemicals.

Estimated Discount To Fair Value: 39.5%

COSCO SHIPPING Energy Transportation Co., Ltd. is trading at HK$9.34, significantly below its estimated fair value of HK$15.44, suggesting a potential undervaluation of 39.5%. The company's earnings are forecasted to grow by 24.71% annually, outpacing the Hong Kong market's average. However, it faces challenges with a high debt level and a recent decline in net profit by approximately HKD 379 million for the first half of 2024 compared to the previous year, indicating some financial pressures despite growth prospects and recent dividend approvals.

• Our growth report here indicates COSCO SHIPPING Energy Transportation may be poised for an improving outlook.
• Unlock comprehensive insights into our analysis of COSCO SHIPPING Energy Transportation stock in this financial health report.

Chervon Holdings (SEHK:2285)

Overview: Chervon Holdings Limited operates in the design, manufacturing, and sale of power tools and outdoor equipment across North America, Europe, China, and other global markets with a market capitalization of HK$9.49 billion.

Operations: The company generates revenue primarily through its power tools and outdoor power equipment segments, with sales amounting to $0.55 billion and $0.81 billion respectively.

Estimated Discount To Fair Value: 40.1%

Chervon Holdings, priced at HK$18.56, is significantly below its fair value of HK$30.96, reflecting a potential undervaluation. The company anticipates a net profit between US$60 million and US$65 million for the first half of 2024, marking an increase from the previous year's US$49 million due to stronger sales and operational efficiencies. Despite not recommending a final dividend for 2023 and reducing dividends earlier in the year, Chervon's revenue growth forecast at 14.1% annually exceeds Hong Kong's market average.

• Our expertly prepared growth report on Chervon Holdings implies its future financial outlook may be stronger than recent results.
• Take a closer look at Chervon Holdings' balance sheet health here in our report.

Global New Material International Holdings (SEHK:6616)

Overview: Global New Material International Holdings Limited, operating primarily in the People’s Republic of China and internationally, is an investment holding company that focuses on manufacturing and distributing pearlescent pigment and functional mica filler, with a market capitalization of approximately HK$5.67 billion.

Operations: The company generates revenue primarily through its operations in the People's Republic of China and Korea, with segments producing CN¥961.34 million and CN¥103.11 million respectively.

Estimated Discount To Fair Value: 12.4%

Global New Material International Holdings, trading at HK$4.58, is below the estimated fair value of HK$5.23, indicating a modest undervaluation. The company's revenue and earnings are expected to grow by 31.1% and 41.85% per year respectively, outpacing the Hong Kong market averages significantly. However, concerns include a recent shareholder dilution and a forecasted low return on equity of 13.1% in three years, alongside a drop in profit margins from 24.4% to 17.1%.

• Our earnings growth report unveils the potential for significant increases in Global New Material International Holdings' future results.
• Click here to discover the nuances of Global New Material International Holdings with our detailed financial health report.

Make It Happen

• Click through to start exploring the rest of the 35 Undervalued SEHK Stocks Based On Cash Flows now.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

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