Based on our updated in-house valuations, we think the intrinsic value of the company is around 35% above its current trading price of HK$13.58 ($2.33). The overarching risk of unfavourable government-related risk is something that is overplayed and has affected good-quality businesses such as this company, along with a gloomy stock market which usually dictates general market sentiment.
JD Logistics: -20.8%
Being cash-flow-positive while having a strong balance sheet is something attractive and good-quality businesses generally have, and JD Logistics is one such company. Despite losing 20.8% and underperforming the Hang Seng benchmark which lost 7.8%, we believe that the stock is trading cheaply and is undervalued.
