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As global markets navigate economic uncertainty and inflation concerns, Asian stocks have shown resilience amidst fluctuating consumer sentiment and trade policy challenges. In this environment, identifying undervalued stocks becomes crucial as investors seek opportunities that offer potential value below intrinsic worth.
Top 10 Undervalued Stocks Based On Cash Flows In Asia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Asia Vital Components (TWSE:3017) | NT$458.50 | NT$897.97 | 48.9% |
| Micronics Japan (TSE:6871) | ¥3360.00 | ¥6583.94 | 49% |
| TechnoPro Holdings (TSE:6028) | ¥3304.00 | ¥6606.26 | 50% |
| Tongqinglou Catering (SHSE:605108) | CN¥20.40 | CN¥40.54 | 49.7% |
| Sangfor Technologies (SZSE:300454) | CN¥102.01 | CN¥202.47 | 49.6% |
| RemeGen (SEHK:9995) | HK$26.15 | HK$51.32 | 49% |
| Kanto Denka Kogyo (TSE:4047) | ¥872.00 | ¥1723.94 | 49.4% |
| CJ CGV (KOSE:A079160) | ₩4570.00 | ₩8940.27 | 48.9% |
| China Eastern Airlines (SHSE:600115) | CN¥3.70 | CN¥7.36 | 49.8% |
| Holtek Semiconductor (TWSE:6202) | NT$44.85 | NT$87.75 | 48.9% |
Below we spotlight a couple of our favorites from our exclusive screener.
WON TECHLtd
Overview: WON TECH Co., Ltd. produces and sells laser and energy-based equipment both in South Korea and internationally, with a market cap of ₩620.89 billion.
Operations: Revenue Segments (in millions of ₩):
Estimated Discount To Fair Value: 13.4%
WON TECH Ltd. is trading at ₩6950, which is 13.4% below its estimated fair value of ₩8024.25, indicating it may be undervalued based on cash flows. The company's earnings are expected to grow significantly at 25% annually over the next three years, outpacing the Korean market's growth rate of 22.8%. Additionally, revenue growth is forecasted at 16.6% per year, surpassing the market average of 8%.
Beijing Chunlizhengda Medical Instruments
Overview: Beijing Chunlizhengda Medical Instruments Co., Ltd. (SEHK:1858) is a company involved in the development, production, and sale of orthopedic implants and medical instruments with a market cap of approximately HK$5.48 billion.
Operations: The company's revenue is primarily derived from the development, production, and sale of orthopedic implants and medical instruments.
Estimated Discount To Fair Value: 36.8%
Beijing Chunlizhengda Medical Instruments is trading at HK$10.08, significantly below its estimated fair value of HK$15.95, highlighting potential undervaluation based on cash flows. Despite a challenging year with decreased sales and net income due to centralized procurement policies, earnings are projected to grow 46% annually over the next three years, outpacing the Hong Kong market's growth rate of 10.4%. However, profit margins have declined from last year.