Stock Analysis

3 Prominent Stocks Estimated To Be Up To 49.8% Below Intrinsic Value

SEHK:522
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In recent weeks, global markets have experienced notable fluctuations, with U.S. stocks retracting some of their previous gains amid uncertainties surrounding the incoming administration's policies and rising long-term interest rates. Meanwhile, the Federal Reserve's cautious stance on rate cuts and mixed economic signals from major regions like Europe and China have further added to investor apprehensions. In this environment of uncertainty, identifying undervalued stocks can offer potential opportunities for investors seeking to capitalize on discrepancies between market prices and intrinsic values.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Tibet Rhodiola Pharmaceutical Holding (SHSE:600211)CN¥38.49CN¥76.9350%
Cambi (OB:CAMBI)NOK15.10NOK30.2050%
Wuhan Keqian BiologyLtd (SHSE:688526)CN¥14.57CN¥29.0949.9%
Insyde Software (TPEX:6231)NT$464.50NT$927.3949.9%
SeSa (BIT:SES)€75.50€150.4949.8%
Zhaojin Mining Industry (SEHK:1818)HK$11.58HK$23.0649.8%
CS Wind (KOSE:A112610)₩41150.00₩82262.5250%
Advanced Energy Industries (NasdaqGS:AEIS)US$109.84US$219.2549.9%
Intellian Technologies (KOSDAQ:A189300)₩44450.00₩88757.9949.9%
St. James's Place (LSE:STJ)£8.21£16.3749.9%

Click here to see the full list of 933 stocks from our Undervalued Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Zhaojin Mining Industry (SEHK:1818)

Overview: Zhaojin Mining Industry Company Limited is an investment holding company involved in the exploration, mining, processing, smelting, and sale of gold and silver products in China with a market capitalization of approximately HK$38.38 billion.

Operations: Zhaojin Mining Industry Company Limited generates its revenue primarily through the exploration, mining, processing, smelting, and sale of gold and silver products in China.

Estimated Discount To Fair Value: 49.8%

Zhaojin Mining Industry is trading significantly below its estimated fair value, with analysts forecasting earnings growth of 34.9% annually, outpacing the Hong Kong market. Despite recent shareholder dilution and a low future return on equity forecast, the company's revenue and profit have grown substantially over the past year. Recent strategic alliances and robust earnings reports highlight potential for improved cash flows, suggesting it may be undervalued based on current financial metrics.

SEHK:1818 Discounted Cash Flow as at Nov 2024
SEHK:1818 Discounted Cash Flow as at Nov 2024

ASMPT (SEHK:522)

Overview: ASMPT Limited is an investment holding company that designs, manufactures, and markets machines, tools, and materials for the semiconductor and electronics assembly industries globally, with a market cap of approximately HK$31.13 billion.

Operations: The company's revenue is primarily derived from its Semiconductor Solutions segment, generating HK$6.42 billion, and its Surface Mount Technology (SMT) Solutions segment, contributing HK$6.81 billion.

Estimated Discount To Fair Value: 48.5%

ASMPT is trading significantly below its estimated fair value of HK$146.26, with a current price of HK$75.25, and analysts expect earnings to grow at 45.7% annually, surpassing the Hong Kong market average. Despite a decline in profit margins from 5.8% to 3.1%, revenue growth is projected at 13.7% per year, faster than the market's rate. Recent interest from KKR for a potential takeover highlights its perceived value amidst ongoing strategic evaluations.

SEHK:522 Discounted Cash Flow as at Nov 2024
SEHK:522 Discounted Cash Flow as at Nov 2024

Xiamen Bank (SHSE:601187)

Overview: Xiamen Bank Co., Ltd. offers a range of banking products and services to individuals, corporate clients, and small and micro finance businesses, with a market cap of CN¥14.94 billion.

Operations: The company's revenue is derived from providing banking products and services to individual customers, corporate clients, and small and micro finance enterprises.

Estimated Discount To Fair Value: 49.3%

Xiamen Bank is trading at CN¥5.81, significantly below its estimated fair value of CN¥11.45, indicating potential undervaluation based on cash flows. Analysts forecast robust revenue and earnings growth rates of 22.7% and 26.4% annually, respectively, both outpacing the Chinese market averages. Despite a drop in net interest income from CN¥3.31 billion to CN¥2.98 billion over nine months ending September 30, net income rose to CN¥1.93 billion from the previous year’s figures.

SHSE:601187 Discounted Cash Flow as at Nov 2024
SHSE:601187 Discounted Cash Flow as at Nov 2024

Summing It All Up

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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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