As global markets navigate a complex landscape marked by trade tensions and economic shifts, Asian markets have shown resilience, with Chinese stocks gaining ground amid expectations of government stimulus. In this environment, identifying undervalued stocks can be a strategic approach for investors seeking opportunities below fair value, especially when considering factors such as market sentiment and macroeconomic developments.
|
Name |
Current Price |
Fair Value (Est) |
Discount (Est) |
|
Wenzhou Yihua Connector (SZSE:002897) |
CN¥38.99 |
CN¥76.64 |
49.1% |
|
Taiyo Yuden (TSE:6976) |
¥2411.50 |
¥4741.52 |
49.1% |
|
Livero (TSE:9245) |
¥1692.00 |
¥3352.54 |
49.5% |
|
Kanto Denka Kogyo (TSE:4047) |
¥841.00 |
¥1677.13 |
49.9% |
|
Hangzhou Zhongtai Cryogenic Technology (SZSE:300435) |
CN¥16.67 |
CN¥33.21 |
49.8% |
|
Gushengtang Holdings (SEHK:2273) |
HK$38.35 |
HK$76.50 |
49.9% |
|
Fuji (TSE:6134) |
¥2253.50 |
¥4448.27 |
49.3% |
|
Everest Medicines (SEHK:1952) |
HK$54.55 |
HK$107.01 |
49% |
|
Brangista (TSE:6176) |
¥597.00 |
¥1180.86 |
49.4% |
|
Boditech Med (KOSDAQ:A206640) |
₩15850.00 |
₩31439.92 |
49.6% |
Underneath we present a selection of stocks filtered out by our screen.
Overview: BYD Company Limited, along with its subsidiaries, operates in the automobiles and batteries sectors across China, Hong Kong, Macau, Taiwan, and internationally, with a market cap of approximately HK$1.17 trillion.
Operations: BYD’s revenue is primarily derived from its operations in the automobiles and batteries sectors, serving markets in China, Hong Kong, Macau, Taiwan, and internationally.
Estimated Discount To Fair Value: 28.2%
BYD is trading at HK$132.2, significantly below its estimated fair value of HK$184.06, indicating potential undervaluation based on cash flows. The company has demonstrated robust earnings growth of 47.2% over the past year and anticipates future revenue growth of 13.2% annually, outpacing the Hong Kong market average. Recent developments include a substantial dividend payout approved at their AGM and expansion plans in Europe, which could further enhance BYD’s financial performance and market position in the EV sector.
Overview: Everest Medicines Limited is a biopharmaceutical company focused on discovering, licensing, developing, and commercializing therapies and vaccines for critical unmet medical needs in Greater China and other Asia Pacific markets, with a market cap of HK$17.70 billion.
Operations: The company’s revenue segment includes Pharmaceuticals, generating CN¥706.68 million.
Estimated Discount To Fair Value: 49%
Everest Medicines is trading at HK$54.55, significantly below its estimated fair value of HK$107.01, suggesting potential undervaluation based on cash flows. The company anticipates a robust revenue growth rate of 29.8% annually, surpassing the Hong Kong market average. Recent product approvals for NEFECON in China and positive trial results for EVER001 underscore its strategic advancements in nephrology treatments, though profitability challenges remain with a net loss reported at CNY 1.04 billion last year.
Overview: Bosideng International Holdings Limited operates in the apparel business in the People’s Republic of China, with a market cap of HK$51.78 billion.
Operations: The company’s revenue segments include Down Apparels generating CN¥20.66 billion, Ladieswear Apparels contributing CN¥735.22 million, Diversified Apparels at CN¥254.12 million, and Original Equipment Manufacturing (OEM) Management bringing in CN¥2.97 billion.
Estimated Discount To Fair Value: 23.2%
Bosideng International Holdings is trading at HK$4.52, below its estimated fair value of HK$5.89, highlighting potential undervaluation based on cash flows. The company’s earnings grew by 41.4% last year and are projected to grow 12.92% annually, outpacing the Hong Kong market’s average growth rate of 10.4%. Despite an unstable dividend track record, analysts agree the stock price could rise by 23.6%, with revenue growth forecasted at 10.9% per year.
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.
Companies discussed in this article include SEHK:1211 SEHK:1952 and SEHK:3998.
This article was originally published by Simply Wall St.
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