Financially Sounds Stocks Selling At A Discount

Stocks recently deemed undervalued include Tianyun International Holdings and Ten Pao Group Holdings, as they trade at a market price below their true valuations. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.

Tianyun International Holdings Limited (SEHK:6836)

Tianyun International Holdings Limited, an investment holding company, produces and sells processed fruit products; and trades fresh fruits in the People’s Republic of China and internationally. Founded in 2003, and now led by CEO Ziyuan Yang, the company now has 650 employees and with the company’s market cap sitting at HKD HK$1.24B, it falls under the small-cap group.

6836’s shares are currently trading at -70% below its actual worth of ¥4.27, at the market price of ¥1.27, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. Also, 6836’s PE ratio is currently around 8.6x relative to its food peer level of 18.2x, suggesting that relative to its competitors, 6836’s stock can be bought at a cheaper price. 6836 is also strong in terms of its financial health, as short-term assets amply cover upcoming and long-term liabilities.

Dig deeper into Tianyun International Holdings here.

SEHK:6836 PE PEG Gauge Jan 21st 18
SEHK:6836 PE PEG Gauge Jan 21st 18

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. Started in 1979, and headed by CEO Kwong Yee Hung, the company now has 6,000 employees and with the company’s market capitalisation at HKD HK$1.36B, we can put it in the small-cap category.

1979’s stock is now floating at around -76% under its true level of $5.66, at the market price of $1.36, based on its expected future cash flows. This mismatch indicates a potential opportunity to buy low. Also, 1979’s PE ratio is currently around 6.4x compared to its electrical peer level of 11x, meaning that relative to its peers, you can buy 1979’s shares at a cheaper price. 1979 is also strong financially, as short-term assets amply cover upcoming and long-term liabilities.

Dig deeper into Ten Pao Group Holdings here.

SEHK:1979 PE PEG Gauge Jan 21st 18
SEHK:1979 PE PEG Gauge Jan 21st 18

Bestway Global Holding Inc. (SEHK:3358)

Bestway Global Holding Inc., an investment holding company, designs, develops, manufactures, and sells a range of outdoor leisure products primarily under the BESTWAY brand in Europe, North America, the People’s Republic of China, and internationally. Founded in 1994, and currently headed by CEO Qiang Zhu, the company size now stands at 11,529 people and with the stock’s market cap sitting at HKD HK$3.95B, it comes under the mid-cap category.

3358’s stock is now floating at around -39% lower than its actual worth of $6.15, at a price of $3.73, based on its expected future cash flows. The difference between value and price signals a potential opportunity to buy 3358 shares at a discount. Moreover, 3358’s PE ratio is around 7.9x relative to its leisure peer level of 20.9x, indicating that relative to its comparable company group, 3358’s stock can be bought at a cheaper price. 3358 is also a financially healthy company, with near-term assets able to cover upcoming and long-term liabilities.

More on Bestway Global Holding here.

SEHK:3358 PE PEG Gauge Jan 21st 18
SEHK:3358 PE PEG Gauge Jan 21st 18

For more financially sound, undervalued companies to add to your portfolio, you can use our free platform to explore our interactive list of undervalued stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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