SEHK Value Picks For August 2024 That Investors Might Be Overlooking

The Hong Kong market has recently seen cautious optimism amid global economic shifts, with the Hang Seng Index advancing while other major indices faced declines. This environment presents a unique opportunity for investors to identify undervalued stocks that may be overlooked. In such a climate, finding good stocks often involves looking for companies with strong fundamentals and growth potential that are trading below their intrinsic value. Here are three SEHK value picks for August 2024 that investors might be overlooking.

Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong

Name	Current Price	Fair Value (Est)	Discount (Est)
Bosideng International Holdings (SEHK:3998)	HK$3.84	HK$6.77	43.3%
WuXi XDC Cayman (SEHK:2268)	HK$20.65	HK$39.33	47.5%
Pacific Textiles Holdings (SEHK:1382)	HK$1.54	HK$2.84	45.9%
Q Technology (Group) (SEHK:1478)	HK$4.89	HK$9.73	49.8%
Hangzhou SF Intra-city Industrial (SEHK:9699)	HK$11.52	HK$22.77	49.4%
China Renaissance Holdings (SEHK:1911)	HK$7.27	HK$12.30	40.9%
iDreamSky Technology Holdings (SEHK:1119)	HK$2.19	HK$4.16	47.4%
DPC Dash (SEHK:1405)	HK$69.00	HK$134.38	48.7%
Jinke Smart Services Group (SEHK:9666)	HK$7.87	HK$13.99	43.8%
Vobile Group (SEHK:3738)	HK$1.53	HK$2.70	43.3%

Click here to see the full list of 34 stocks from our Undervalued SEHK Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

DPC Dash (SEHK:1405)

Overview: DPC Dash Ltd, with a market cap of HK$9 billion, operates a chain of fast-food restaurants in the People's Republic of China.

Operations: The company's revenue segments include sales from its fast-food restaurant operations in the People’s Republic of China.

Estimated Discount To Fair Value: 48.7%

DPC Dash Ltd appears undervalued based on cash flows, trading at HK$69, significantly below its estimated fair value of HK$134.38. Recent earnings show robust growth with sales of CNY 2.04 billion for H1 2024, up from CNY 1.38 billion a year ago, and net income rising to CNY 10.91 million from CNY 8.75 million despite modest EPS growth. The company’s aggressive expansion strategy and strong revenue forecasts bolster its investment potential amidst Hong Kong's market landscape.

• Our expertly prepared growth report on DPC Dash implies its future financial outlook may be stronger than recent results.
• Unlock comprehensive insights into our analysis of DPC Dash stock in this financial health report.

Bosideng International Holdings (SEHK:3998)

Overview: Bosideng International Holdings Limited operates in the apparel business in the People's Republic of China and has a market cap of HK$42.06 billion.

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

Estimated Discount To Fair Value: 43.3%

Bosideng International Holdings is trading at HK$3.84, significantly below its estimated fair value of HK$6.77. The company reported strong financial performance with sales reaching CNY 23.21 billion and net income at CNY 3.07 billion for the year ended March 31, 2024, showing substantial growth from the previous year. Despite a history of unstable dividends, recent approvals for increased payouts enhance its attractiveness as an undervalued stock based on cash flows in Hong Kong's market landscape.

• The analysis detailed in our Bosideng International Holdings growth report hints at robust future financial performance.
• Navigate through the intricacies of Bosideng International Holdings with our comprehensive financial health report here.

Angelalign Technology (SEHK:6699)

Overview: Angelalign Technology Inc. is an investment holding company that researches, develops, designs, manufactures, and markets clear aligner treatment solutions in the People’s Republic of China with a market cap of approximately HK$9.46 billion.

Operations: The company's revenue is primarily derived from its Dental Equipment & Supplies segment, which generated CN¥1.72 billion.

Estimated Discount To Fair Value: 13.3%

Angelalign Technology reported half-year sales of CNY 861.5 million, up from CNY 616.33 million a year ago, but net income declined to CNY 22.48 million from CNY 32.31 million. The stock is trading at HK$55.7, below its estimated fair value of HK$64.27, and analysts expect earnings to grow significantly over the next three years despite lower profit margins and one-off items impacting results.

• Our earnings growth report unveils the potential for significant increases in Angelalign Technology's future results.
• Take a closer look at Angelalign Technology's balance sheet health here in our report.

Seize The Opportunity

• Click this link to deep-dive into the 34 companies within our Undervalued SEHK Stocks Based On Cash Flows screener.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
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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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