Stock Analysis

Asian Stocks That May Be Undervalued In June 2025

SZSE:001339
Source: Shutterstock

As global markets experience a surge in optimism due to easing trade tensions and positive economic indicators, Asian stock markets are also witnessing a period of renewed investor interest. In this environment, identifying undervalued stocks becomes crucial as investors seek opportunities that may offer potential value amidst the broader market rally.

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Top 10 Undervalued Stocks Based On Cash Flows In Asia

NameCurrent PriceFair Value (Est)Discount (Est)
Wenzhou Yihua Connector (SZSE:002897)CN¥38.53CN¥75.9649.3%
T'Way Air (KOSE:A091810)₩2040.00₩3980.0748.7%
Strike CompanyLimited (TSE:6196)¥3660.00¥7291.1049.8%
Polaris Holdings (TSE:3010)¥210.00¥415.6949.5%
Peijia Medical (SEHK:9996)HK$6.39HK$12.6649.5%
Livero (TSE:9245)¥1705.00¥3379.7549.6%
Kanto Denka Kogyo (TSE:4047)¥842.00¥1680.1649.9%
GCH Technology (SHSE:688625)CN¥30.38CN¥60.2249.6%
Forum Engineering (TSE:7088)¥1218.00¥2377.4748.8%
Dajin Heavy IndustryLtd (SZSE:002487)CN¥31.51CN¥62.4249.5%

Click here to see the full list of 284 stocks from our Undervalued Asian Stocks Based On Cash Flows screener.

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

JWIPC Technology (SZSE:001339)

Overview: JWIPC Technology Co., Ltd. focuses on researching, developing, and manufacturing IoT hardware solutions, with a market cap of CN¥11.39 billion.

Operations: JWIPC Technology Co., Ltd.'s revenue segments are not provided in the given text.

Estimated Discount To Fair Value: 34.3%

JWIPC Technology is trading 34.3% below its estimated fair value of CNY 73, indicating potential undervaluation based on cash flows. The company reported a significant increase in net income to CNY 124.92 million for 2024 from CNY 32.81 million the previous year, with earnings expected to grow faster than the Chinese market at an annual rate of 34.2%. Recent dividend affirmations further bolster investor confidence amidst strong financial performance and growth prospects.

SZSE:001339 Discounted Cash Flow as at Jun 2025
SZSE:001339 Discounted Cash Flow as at Jun 2025

Easy Click Worldwide Network Technology (SZSE:301171)

Overview: Easy Click Worldwide Network Technology Co., Ltd. operates in the technology sector and has a market capitalization of CN¥12.37 billion.

Operations: The company's revenue is primarily derived from its Advertising and Promotion Services segment, which generated CN¥2.99 billion.

Estimated Discount To Fair Value: 43.5%

Easy Click Worldwide Network Technology is trading at CNY 26.25, significantly below its estimated fair value of CNY 46.49, indicating potential undervaluation based on cash flows. The company reported Q1 2025 sales of CNY 929.12 million, nearly doubling from the previous year, with earnings expected to grow annually by over 31%, outpacing the Chinese market's growth rate. However, recent share price volatility may concern some investors despite these strong financial indicators.

SZSE:301171 Discounted Cash Flow as at Jun 2025
SZSE:301171 Discounted Cash Flow as at Jun 2025

Sumitomo Mitsui Financial Group (TSE:8316)

Overview: Sumitomo Mitsui Financial Group, Inc. operates as a comprehensive financial services company offering banking, leasing, securities, and consumer finance across multiple regions including Japan and internationally, with a market cap of ¥14.03 trillion.

Operations: The company's revenue segments include banking, leasing, securities, and consumer finance services across Japan, the Americas, Europe, the Middle East, Asia, and Oceania.

Estimated Discount To Fair Value: 46.5%

Sumitomo Mitsui Financial Group is trading at ¥3,625, significantly below its estimated fair value of ¥6,769.69, suggesting potential undervaluation based on cash flows. The company forecasts a significant annual earnings growth of 20.4%, surpassing the Japanese market's average. However, its dividend yield of 3.75% might not be well covered by earnings in the future. Recent strategic alliances and fixed-income offerings strengthen its financial positioning amidst executive changes and corporate governance updates.

TSE:8316 Discounted Cash Flow as at Jun 2025
TSE:8316 Discounted Cash Flow as at Jun 2025

Key Takeaways

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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.

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