Asian Market Gems: 3 Stocks Priced Below Estimated Value

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Amidst a backdrop of global economic uncertainties, the Asian markets have displayed resilience, with investors closely monitoring developments in China and Japan as they navigate trade tensions and inflationary pressures. In this environment, identifying undervalued stocks can offer potential opportunities for investors seeking to capitalize on discrepancies between market price and intrinsic value.

Top 10 Undervalued Stocks Based On Cash Flows In Asia

Name

Current Price

Fair Value (Est)

Discount (Est)

Wiwynn (TWSE:6669)

NT$1920.00

NT$3781.24

49.2%

Chifeng Jilong Gold MiningLtd (SHSE:600988)

CN¥18.16

CN¥36.02

49.6%

Shenzhou International Group Holdings (SEHK:2313)

HK$57.10

HK$114.14

50%

RACCOON HOLDINGS (TSE:3031)

¥965.00

¥1903.17

49.3%

Hyosung Heavy Industries (KOSE:A298040)

₩432500.00

₩855375.21

49.4%

LITALICO (TSE:7366)

¥1081.00

¥2155.11

49.8%

CREAL (TSE:2998)

¥3460.00

¥6806.25

49.2%

Nanjing King-Friend Biochemical PharmaceuticalLtd (SHSE:603707)

CN¥12.50

CN¥24.90

49.8%

Sunny Optical Technology (Group) (SEHK:2382)

HK$84.65

HK$168.45

49.7%

Nanofilm Technologies International (SGX:MZH)

SGD0.67

SGD1.32

49.2%

Click here to see the full list of 288 stocks from our Undervalued Asian Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Techtronic Industries

Overview: Techtronic Industries Company Limited designs, manufactures, and markets power tools, outdoor power equipment, and floorcare and cleaning products globally, with a market cap of approximately HK$204.12 billion.

Operations: The company's revenue is primarily derived from its Power Equipment segment, which accounts for $13.23 billion, followed by the Floorcare & Cleaning segment at $965.09 million.

Estimated Discount To Fair Value: 17.3%

Techtronic Industries, trading at HK$111.4, is considered undervalued based on its discounted cash flow valuation with an estimated fair value of HK$134.73. The company's earnings are projected to grow at 15.9% annually, outpacing the Hong Kong market's 11.6%. Despite slower revenue growth forecasts of 8.5%, Techtronic's strong return on equity forecast of 20% in three years underscores its potential as a solid investment opportunity in Asia's undervalued stocks landscape.

SEHK:669 Discounted Cash Flow as at Mar 2025
SEHK:669 Discounted Cash Flow as at Mar 2025

Treasure FactoryLTD

Overview: Treasure Factory Co., LTD., along with its subsidiaries, operates reuse stores in Japan and has a market cap of ¥39.19 billion.