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The Hong Kong market has recently experienced a mix of performance, with the Hang Seng Index declining slightly by 0.45%, reflecting broader concerns about weak manufacturing data and persistent economic challenges. Despite these headwinds, opportunities for discerning investors remain, particularly in identifying undervalued stocks that may offer significant upside potential. In the current market environment, a good stock is often characterized by strong fundamentals and resilience amidst economic uncertainties. Here we explore three SEHK stocks that are estimated to be undervalued by up to 46.6%.
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$3.85 | HK$6.79 | 43.3% |
| Wasion Holdings (SEHK:3393) | HK$5.77 | HK$10.71 | 46.1% |
| BYD Electronic (International) (SEHK:285) | HK$27.70 | HK$53.11 | 47.8% |
| Inspur Digital Enterprise Technology (SEHK:596) | HK$2.89 | HK$5.70 | 49.3% |
| Pacific Textiles Holdings (SEHK:1382) | HK$1.61 | HK$2.99 | 46.1% |
| iDreamSky Technology Holdings (SEHK:1119) | HK$2.18 | HK$4.20 | 48.1% |
| Weimob (SEHK:2013) | HK$1.16 | HK$2.17 | 46.6% |
| MicroPort CardioFlow Medtech (SEHK:2160) | HK$0.72 | HK$1.39 | 48.1% |
| Innovent Biologics (SEHK:1801) | HK$39.95 | HK$73.85 | 45.9% |
| L'Occitane International (SEHK:973) | HK$33.95 | HK$58.44 | 41.9% |
Below we spotlight a couple of our favorites from our exclusive screener.
Weimob
Overview: Weimob Inc., an investment holding company with a market cap of HK$3.57 billion, provides digital commerce and media services in the People’s Republic of China.
Operations: The company generates revenue from two main segments: Merchant Solutions (CN¥878.28 million) and Subscription Solutions (CN¥1.35 billion).
Estimated Discount To Fair Value: 46.6%
Weimob is trading at HK$1.16, significantly below its estimated fair value of HK$2.17, indicating it is highly undervalued based on discounted cash flow (DCF) analysis. Despite recent shareholder dilution, the company’s revenue is forecast to grow 12.2% annually, outpacing the Hong Kong market's growth rate of 7.4%. Additionally, Weimob is expected to achieve profitability within three years with earnings projected to grow substantially at 109.92% per year.
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Insights from our recent growth report point to a promising forecast for Weimob's business outlook.
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Dive into the specifics of Weimob here with our thorough financial health report.
ASMPT
Overview: ASMPT Limited, with a market cap of HK$30.32 billion, designs, manufactures, and markets machines, tools, and materials for the semiconductor and electronics assembly industries globally.