In This Article:
Amid escalating trade tensions and policy uncertainties, Asian markets have shown resilience with gains in major indices, as seen in China's CSI 300 and Japan's Nikkei 225. In such a fluctuating environment, identifying stocks that may be priced below their intrinsic value can be a prudent strategy for investors seeking opportunities that offer potential for growth despite broader market volatility.
Top 10 Undervalued Stocks Based On Cash Flows In Asia
Name | Current Price | Fair Value (Est) | Discount (Est) |
Xiamen Amoytop Biotech (SHSE:688278) | CN¥73.48 | CN¥146.19 | 49.7% |
Tongqinglou Catering (SHSE:605108) | CN¥20.88 | CN¥41.46 | 49.6% |
Rise Consulting Group (TSE:9168) | ¥927.00 | ¥1818.23 | 49% |
Zhejiang Century Huatong GroupLtd (SZSE:002602) | CN¥6.70 | CN¥13.24 | 49.4% |
World Fitness Services (TWSE:2762) | NT$79.70 | NT$156.16 | 49% |
Zhejiang Haikong Nanke Huatie Digital Intelligence and Technology (SHSE:603300) | CN¥10.76 | CN¥21.27 | 49.4% |
Swire Properties (SEHK:1972) | HK$16.34 | HK$32.21 | 49.3% |
Everest Medicines (SEHK:1952) | HK$49.70 | HK$97.92 | 49.2% |
Visional (TSE:4194) | ¥8432.00 | ¥16585.40 | 49.2% |
Sunstone Development (SHSE:603612) | CN¥16.82 | CN¥32.98 | 49% |
Here we highlight a subset of our preferred stocks from the screener.
Precision Tsugami (China)
Overview: Precision Tsugami (China) Corporation Limited is an investment holding company that manufactures and sells computer numerical control machine tools in Mainland China and internationally, with a market cap of HK$8.38 billion.
Operations: The company generates revenue of CN¥3.60 billion from the manufacture and sale of CNC high precision machine tools.
Estimated Discount To Fair Value: 48.5%
Precision Tsugami (China) is trading at HK$22.25, significantly below its estimated fair value of HK$43.22, indicating potential undervaluation based on cash flows. The company has initiated a share buyback program to enhance net asset value and earnings per share. Despite a volatile share price, earnings are forecast to grow 25.9% annually, outpacing the Hong Kong market's growth rate. However, dividends are not well covered by free cash flows despite high expected revenue growth of 22% annually.
Autel Intelligent Technology
Overview: Autel Intelligent Technology Corp., Ltd. specializes in the research, development, production, sale, and servicing of automotive intelligent diagnostics equipment and electronic components, with a market cap of CN¥16.56 billion.