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Tse Sui Luen Jewellery (International) and Beijing Jingkelong are consumer staple stocks on my list that are potentially undervalued. This means their current share prices are trading well-below what the companies are actually worth. 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.
Tse Sui Luen Jewellery (International) Limited (SEHK:417)
Tse Sui Luen Jewellery (International) Limited, an investment holding company, manufactures, sells, and markets jewelry products in Hong Kong, Macau, Mainland China, Malaysia, and other countries. Founded in 1971, and now run by On Yee Yau, the company provides employment to 3,060 people and with the market cap of HKD HK$562.79M, it falls under the small-cap group.
417’s stock is now trading at -28% beneath its true value of $3.17, at the market price of HK$2.28, according to my discounted cash flow model. This discrepancy signals a potential opportunity to buy 417 shares at a low price. In terms of relative valuation, 417’s PE ratio is around 12.08x compared to its Luxury peer level of, 13.36x indicating that relative to other stocks in the industry, 417’s shares can be purchased for a lower price. 417 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.
Continue research on Tse Sui Luen Jewellery (International) here.
Beijing Jingkelong Company Limited (SEHK:814)
Beijing Jingkelong Company Limited engages in the retail and wholesale distribution of daily consumer products in the People’s Republic of China. Started in 1994, and currently headed by CEO Yongtian Shang, the company currently employs 6,842 people and with the company’s market cap sitting at HKD HK$807.95M, it falls under the small-cap stocks category.
814’s shares are now hovering at around -81% lower than its actual level of ¥10.17, at the market price of HK$1.96, based on my discounted cash flow model. The mismatch signals a potential chance to invest in 814 at a discounted price. Furthermore, 814’s PE ratio is around 13.82x against its its Consumer Retailing peer level of, 17.77x indicating that relative to its competitors, we can purchase 814’s shares for cheaper. 814 is also a financially healthy company, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.