3 Promising Penny Stocks With Market Caps Up To US$4B

Operations: The company’s revenue is derived entirely from its operations in China, amounting to CN¥27.05 billion.

Market Cap: HK$23.72B

Guangshen Railway Company Limited, with a market cap of HK$23.72 billion and revenue of CN¥27.05 billion, has experienced significant earnings growth over the past year, surpassing industry averages. Its short-term assets comfortably cover both short- and long-term liabilities, indicating solid financial health. Despite a low return on equity at 4.6%, the company maintains high-quality earnings and stable weekly volatility at 7%. Recent board changes include the resignation of Chairman Wei Hao and an upcoming vote on appointing Mr. Jiang Hui as a director, reflecting ongoing corporate governance adjustments amidst steady operational performance improvements.

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: China Overseas Grand Oceans Group Limited is an investment holding company that focuses on investing in, developing, and leasing real estate properties in the People’s Republic of China and Hong Kong, with a market cap of approximately HK$63 billion.

Operations: The company generates revenue primarily from Property Investment and Development (CN¥50.70 billion) and Property Leasing (CN¥279.66 million).

Market Cap: HK$6.3B

China Overseas Grand Oceans Group Limited, with a market cap of HK$63 billion, has faced challenges including a significant one-off loss of CN¥1.5 billion impacting recent financial results. Despite this, the company maintains strong short-term asset coverage over both short- and long-term liabilities. Although its net profit margins have declined to 2.9% from last year’s 4.4%, and return on equity remains low at 2.4%, the company is trading slightly below its estimated fair value and offers good relative value compared to peers. Recent sales figures show mixed performance with notable monthly increases but overall yearly declines in contracted sales volumes and values.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include HLSE:METSB SEHK:525 and SEHK:81.

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