In This Article:
Companies that trade at market prices below their actual values, such as Ten Pao Group Holdings and Great Eagle Holdings, are perceived to be undervalued. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
Ten Pao Group Holdings Limited (SEHK:1979)
Ten Pao Group Holdings Limited, an investment holding company, develops, manufactures, and sells electric charging products in the People’s Republic of China, rest of Asia, the Americas, Europe, South Africa, and internationally. Established in 1979, and now run by Kwong Yee Hung, the company currently employs 6,000 people and with the market cap of HKD HK$1.11B, it falls under the small-cap group.
1979’s stock is currently trading at -51% below its true value of $2.26, at the market price of HK$1.11, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. In addition to this, 1979’s PE ratio stands at 7.03x while its Electrical peer level trades at, 12.43x indicating that relative to its comparable set of companies, you can buy 1979 for a cheaper price. 1979 is also strong in terms of its financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. It’s debt-to-equity ratio of 31.71% has been declining over time, demonstrating its ability to reduce its debt obligations year on year. Dig deeper into Ten Pao Group Holdings here.
Great Eagle Holdings Limited (SEHK:41)
Great Eagle Holdings Limited, an investment holding company, invests in, develops, and manages residential, office, retail, and hotel properties in Asia, North America, Australasia, and Europe. Established in 1963, and currently run by Ka Lo, the company provides employment to 6,591 people and with the company’s market capitalisation at HKD HK$27.52B, we can put it in the large-cap group.
41’s shares are currently floating at around -68% less than its true level of $125.97, at a price tag of HK$39.85, based on its expected future cash flows. The mismatch signals a potential chance to invest in 41 at a discounted price. Moreover, 41’s PE ratio stands at 3.11x against its its Real Estate peer level of, 6.83x meaning that relative to its comparable set of companies, we can buy 41’s stock at a cheaper price today. 41 is also in great financial shape, as short-term assets amply cover upcoming and long-term liabilities.