Stock Analysis

SEHK Value Stock Picks Including China Resources Mixc Lifestyle Services And 2 Others Estimated Below Intrinsic Value

SEHK:1209
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As global markets experience fluctuations, the Hong Kong market has seen its benchmark Hang Seng Index decline significantly, reflecting waning optimism about economic stimulus measures from Beijing. In this environment of uncertainty, identifying undervalued stocks can be crucial for investors seeking opportunities that may offer potential value relative to their intrinsic worth.

Top 10 Undervalued Stocks Based On Cash Flows In Hong Kong

NameCurrent PriceFair Value (Est)Discount (Est)
BYD Electronic (International) (SEHK:285)HK$32.40HK$63.1948.7%
Giant Biogene Holding (SEHK:2367)HK$51.70HK$96.4946.4%
Laopu Gold (SEHK:6181)HK$160.10HK$308.5248.1%
Kuaishou Technology (SEHK:1024)HK$47.45HK$88.4646.4%
Yadea Group Holdings (SEHK:1585)HK$12.28HK$23.2047.1%
Shanghai INT Medical Instruments (SEHK:1501)HK$28.30HK$55.8149.3%
CSC Financial (SEHK:6066)HK$8.95HK$17.5849.1%
Hangzhou SF Intra-city Industrial (SEHK:9699)HK$10.48HK$19.5046.3%
Innovent Biologics (SEHK:1801)HK$44.60HK$80.7344.8%
AK Medical Holdings (SEHK:1789)HK$4.43HK$8.3246.7%

Click here to see the full list of 37 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.

China Resources Mixc Lifestyle Services (SEHK:1209)

Overview: China Resources Mixc Lifestyle Services Limited is an investment holding company that offers property management and commercial operational services in the People's Republic of China, with a market capitalization of approximately HK$72.93 billion.

Operations: The company generates revenue through its property management business, which accounts for CN¥10.22 billion, and its commercial management business, contributing CN¥5.71 billion.

Estimated Discount To Fair Value: 41%

China Resources Mixc Lifestyle Services is trading at HK$31.95, significantly below its estimated fair value of HK$54.13, suggesting it may be undervalued based on cash flows. The company reported robust earnings growth of 33.1% over the past year and forecasts a 14.6% annual increase in earnings, outpacing the Hong Kong market average of 12.1%. Recent interim results showed improved sales and net income, enhancing its financial position amidst dividend increases and special payouts.

SEHK:1209 Discounted Cash Flow as at Oct 2024
SEHK:1209 Discounted Cash Flow as at Oct 2024

Giant Biogene Holding (SEHK:2367)

Overview: Giant Biogene Holding Co., Ltd. is an investment holding company involved in the research, development, manufacture, and sale of bioactive material-based beauty and health products in China, with a market cap of HK$52.18 billion.

Operations: The company generates revenue from its biotechnology segment, amounting to CN¥4.46 billion.

Estimated Discount To Fair Value: 46.4%

Giant Biogene Holding is trading at HK$51.7, significantly below its estimated fair value of HK$96.49, highlighting potential undervaluation based on cash flows. Recent earnings for the first half of 2024 showed substantial growth with sales reaching CNY 2.54 billion and net income rising to CNY 983.16 million. Earnings are projected to grow at a robust annual rate of over 23%, surpassing the Hong Kong market average, despite past shareholder dilution concerns.

SEHK:2367 Discounted Cash Flow as at Oct 2024
SEHK:2367 Discounted Cash Flow as at Oct 2024

BYD Electronic (International) (SEHK:285)

Overview: BYD Electronic (International) Company Limited is an investment holding company involved in the design, manufacture, assembly, and sale of mobile handset components and modules both in China and internationally, with a market cap of approximately HK$73 billion.

Operations: The company generates revenue of CN¥152.36 billion from its operations in the manufacture, assembly, and sale of mobile handset components and modules.

Estimated Discount To Fair Value: 48.7%

BYD Electronic (International) is trading at HK$32.4, well below its estimated fair value of HK$63.19, suggesting significant undervaluation based on cash flows. The company's recent earnings report for the first half of 2024 showed stable net income at CNY 1,517.8 million despite a sales increase to CNY 78.58 billion from the previous year. Earnings are expected to grow annually by over 24%, outpacing the Hong Kong market average growth rate.

SEHK:285 Discounted Cash Flow as at Oct 2024
SEHK:285 Discounted Cash Flow as at Oct 2024

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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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