As global markets react to the potential for rate cuts and shifting economic conditions, small-cap indices like the Russell 2000 have shown robust performance, reflecting a renewed investor interest in these segments. In Asia, this environment creates an intriguing backdrop for identifying promising small-cap stocks that may be positioned to benefit from insider buying trends and current market dynamics.
Top 10 Undervalued Small Caps With Insider Buying In Asia
Name | PE | PS | Discount to Fair Value | Value Rating |
---|---|---|---|---|
Credit Corp Group | 12.0x | 2.5x | 31.32% | ★★★★★★ |
Growthpoint Properties Australia | NA | 5.8x | 30.77% | ★★★★★☆ |
East West Banking | 3.2x | 0.8x | 18.54% | ★★★★☆☆ |
BWP Trust | 9.7x | 12.7x | 17.14% | ★★★★☆☆ |
Daiwa House Logistics Trust | 12.9x | 6.7x | 15.31% | ★★★★☆☆ |
Dicker Data | 20.3x | 0.7x | -20.26% | ★★★☆☆☆ |
Build King Holdings | 3.6x | 0.1x | 16.89% | ★★★☆☆☆ |
Elders | 21.0x | 0.4x | 47.42% | ★★★☆☆☆ |
China Lesso Group Holdings | 8.4x | 0.5x | -283.82% | ★★★☆☆☆ |
Far East Orchard | 9.6x | 3.1x | 15.41% | ★★★☆☆☆ |
We'll examine a selection from our screener results.
Alliance Aviation Services (ASX:AQZ)
Simply Wall St Value Rating: ★★★★★☆
Overview: Alliance Aviation Services provides aircraft charter and aviation services, with a market capitalization of A$0.99 billion.
Operations: Alliance Aviation Services generates revenue primarily from the provision of aircraft charter and aviation services, with recent figures showing revenue at A$773.08 million. The cost of goods sold (COGS) stands at A$537.88 million, resulting in a gross profit margin of 30.42%. Operating expenses are recorded at A$116.50 million, while non-operating expenses amount to A$61.37 million, impacting net income which is reported as A$57.32 million with a net income margin of 7.41%.
PE: 6.7x
Alliance Aviation Services, a smaller company in Asia, recently declared a fully franked dividend of A$0.03 per share for 2025. Despite reporting sales growth to A$760.87 million from A$637.19 million last year, net income slightly decreased to A$57.32 million from A$60.45 million previously, reflecting some financial pressure due to high debt levels and reliance on external borrowing for funding. Insider confidence is evident with recent share purchases by executives during the past year, indicating potential future optimism amidst current challenges in their financial structure and modest earnings forecast growth of 3.73% annually.
Deterra Royalties (ASX:DRR)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Deterra Royalties is a company that focuses on managing and acquiring royalty assets, primarily in the mining sector, with a market capitalization of A$2.30 billion.
Operations: The company generates revenue primarily from its Bulk and Precious segments, with Bulk being the dominant contributor. Over recent periods, it has shown a gross profit margin ranging from 95.37% to 97.12%. Operating expenses have increased over time, impacting net income margins which have ranged between 59.10% and 67.30%.
PE: 13.9x
Deterra Royalties, a smaller player in the Asian market, has recently caught attention with insider confidence shown through share purchases over the past six months. The company reported net income of A$155.7 million for the year ending June 30, 2025, slightly up from last year. However, it faces challenges with high debt levels and reliance on external borrowing. Despite these concerns, its consistent earnings and dividends could indicate potential for steady returns in an uncertain market environment.
- Get an in-depth perspective on Deterra Royalties' performance by reading our valuation report here.
Explore historical data to track Deterra Royalties' performance over time in our Past section.
Elders (ASX:ELD)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Elders is an agribusiness company engaged in providing agricultural products and services through its branch network, wholesale products, and feed and processing services, with a market cap of A$1.37 billion.
Operations: The company generates revenue primarily through its Branch Network, Wholesale Products, and Feed and Processing Services. Over recent periods, the gross profit margin has shown fluctuations, with a notable increase to 20.67% by March 2025 from earlier lower levels. Operating expenses are significant, driven mainly by sales and marketing costs alongside general and administrative expenses.
PE: 21.0x
Elders, a small company in Asia, shows potential for growth with earnings projected to increase by 25% annually. Despite past shareholder dilution and reliance on external borrowing, insider confidence is evident as Non-Executive Director Damien Frawley purchased 20,000 shares for A$125,000. This move suggests belief in the company's future prospects. While large one-off items have affected financial results recently, the focus remains on sustainable growth opportunities within its sector.
Taking Advantage
- Navigate through the entire inventory of 31 Undervalued Asian Small Caps With Insider Buying here.
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Contemplating Other Strategies?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
- Find companies with promising cash flow potential yet trading below their fair value.
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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