3 SEHK Stocks Estimated To Be Trading Below Intrinsic Value

In recent weeks, the Hong Kong market has experienced a mix of economic signals, with inflation data and trade performance drawing significant attention. Despite these fluctuations, opportunities still exist for discerning investors to find stocks trading below their intrinsic value. Identifying undervalued stocks can be particularly rewarding in such an environment, as these investments often have strong fundamentals that are temporarily overlooked by the broader market.

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$3.65	HK$6.75	45.9%
Shanghai INT Medical Instruments (SEHK:1501)	HK$28.25	HK$56.14	49.7%
Tencent Holdings (SEHK:700)	HK$388.80	HK$768.95	49.4%
BYD (SEHK:1211)	HK$245.00	HK$464.48	47.3%
Hangzhou SF Intra-city Industrial (SEHK:9699)	HK$10.98	HK$19.91	44.9%
Jiangxi Rimag Group (SEHK:2522)	HK$26.25	HK$49.42	46.9%
Akeso (SEHK:9926)	HK$63.95	HK$126.54	49.5%
Innovent Biologics (SEHK:1801)	HK$42.15	HK$80.00	47.3%
Digital China Holdings (SEHK:861)	HK$3.24	HK$6.10	46.9%
Jinke Smart Services Group (SEHK:9666)	HK$7.37	HK$13.77	46.5%

Click here to see the full list of 28 stocks from our Undervalued SEHK Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

XD (SEHK:2400)

Overview: XD Inc. (SEHK:2400) is an investment holding company that develops, publishes, operates, and distributes mobile and web games in Mainland China and internationally, with a market cap of HK$9.01 billion.

Operations: The company's revenue segments include CN¥2.43 billion from Game and CN¥1.43 billion from the TapTap Platform.

Estimated Discount To Fair Value: 38.7%

XD Inc. recently reported a significant increase in net income for the first half of 2024, reaching CNY 205.1 million from CNY 90.19 million a year ago, driven by strong sales growth to CNY 2.22 billion. The stock trades at HK$18.7, well below its estimated fair value of HK$30.52, indicating it is undervalued based on cash flows despite past shareholder dilution and high marketing expenses impacting profitability improvements from new games and services revenue growth.

• Our expertly prepared growth report on XD implies its future financial outlook may be stronger than recent results.
• Navigate through the intricacies of XD with our comprehensive financial health report here.

Jiangxi Rimag Group (SEHK:2522)

Overview: Jiangxi Rimag Group Co., Ltd. operates medical imaging centers in China and has a market cap of HK$9.35 billion.

Operations: The company's revenue segment includes CN¥812.85 million from Medical Labs & Research.

Estimated Discount To Fair Value: 46.9%

Jiangxi Rimag Group is trading at HK$26.25, significantly below its estimated fair value of HK$49.42, making it highly undervalued based on cash flows. Despite a recent drop in sales to CNY 413.71 million and net income to CNY 3.84 million for the first half of 2024, earnings are forecasted to grow substantially at 71.84% per year over the next three years, outpacing the Hong Kong market's growth rate and highlighting its potential for future profitability improvements.

• Our comprehensive growth report raises the possibility that Jiangxi Rimag Group is poised for substantial financial growth.
• Click here and access our complete balance sheet health report to understand the dynamics of Jiangxi Rimag Group.

United Company RUSAL International (SEHK:486)

Overview: United Company RUSAL International Public Joint-Stock Company is involved in the production and trading of aluminium and related products in Russia, with a market cap of approximately HK$35.77 billion.

Operations: The company's revenue segments include Aluminium at $10.48 billion and Aluminous at $4.49 billion.

Estimated Discount To Fair Value: 44.7%

United Company RUSAL International is trading at HK$2.35, significantly below its estimated fair value of HK$4.25, indicating it is highly undervalued based on cash flows. Despite a slight drop in sales to US$5.70 billion for the first half of 2024, net income rose to US$565 million from US$420 million a year ago. Earnings are forecasted to grow substantially at 100% per year over the next three years, outpacing the Hong Kong market's growth rate.

• Insights from our recent growth report point to a promising forecast for United Company RUSAL International's business outlook.
• Click to explore a detailed breakdown of our findings in United Company RUSAL International's balance sheet health report.

Turning Ideas Into Actions

• Unlock more gems! Our Undervalued SEHK Stocks Based On Cash Flows screener has unearthed 25 more companies for you to explore.Click here to unveil our expertly curated list of 28 Undervalued SEHK Stocks Based On Cash Flows.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
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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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