As global markets navigate a complex landscape marked by interest rate adjustments and geopolitical developments, Asia's stock markets present intriguing opportunities for value investors. In this environment, identifying undervalued stocks requires careful consideration of companies with strong fundamentals that may be trading at significant discounts due to broader market sentiment rather than intrinsic weaknesses.
Top 10 Undervalued Stocks Based On Cash Flows In Asia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Zhejiang Century Huatong GroupLtd (SZSE:002602) | CN¥18.67 | CN¥37.01 | 49.6% |
| Xi'an International Medical Investment (SZSE:000516) | CN¥4.78 | CN¥9.37 | 49% |
| Visional (TSE:4194) | ¥10100.00 | ¥19720.69 | 48.8% |
| Meitu (SEHK:1357) | HK$8.75 | HK$17.27 | 49.3% |
| LianChuang Electronic TechnologyLtd (SZSE:002036) | CN¥10.04 | CN¥19.94 | 49.6% |
| freee K.K (TSE:4478) | ¥3345.00 | ¥6674.74 | 49.9% |
| Daiichi Sankyo Company (TSE:4568) | ¥3370.00 | ¥6631.69 | 49.2% |
| COVER (TSE:5253) | ¥1857.00 | ¥3670.33 | 49.4% |
| Chongqing Baiya Sanitary Products (SZSE:003006) | CN¥22.36 | CN¥43.40 | 48.5% |
| Alibaba Health Information Technology (SEHK:241) | HK$5.73 | HK$11.29 | 49.3% |
Here's a peek at a few of the choices from the screener.
Damai Entertainment Holdings (SEHK:1060)
Overview: Damai Entertainment Holdings Limited is an investment holding company involved in content, technology, and IP merchandising and commercialization in Hong Kong and the People's Republic of China, with a market cap of approximately HK$29.88 billion.
Operations: The company's revenue is derived from several segments, including CN¥2.06 billion from Damai, CN¥0.50 billion from Drama Series Production, CN¥1.43 billion from IP Merchandising and Innovation Initiatives, and CN¥2.71 billion from its Film Technology and Investment, Production, Promotion and Distribution Platform.
Estimated Discount To Fair Value: 20.8%
Damai Entertainment Holdings is trading 20.8% below its estimated fair value of HK$1.26, indicating potential undervaluation based on cash flows. Despite large one-off items affecting results, the company boasts high-quality earnings and significant profit growth forecasts of over 41% annually, outpacing the Hong Kong market's 12%. Revenue is expected to grow at 13.3% per year, faster than the market's 8.6%. Recent board changes include new appointments enhancing governance expertise.
- Our earnings growth report unveils the potential for significant increases in Damai Entertainment Holdings' future results.
- Click here to discover the nuances of Damai Entertainment Holdings with our detailed financial health report.
InnoCare Pharma (SEHK:9969)
Overview: InnoCare Pharma Limited is a biopharmaceutical company focused on discovering, developing, and commercializing drugs for cancer and autoimmune diseases in China, with a market cap of HK$28.53 billion.
Operations: The company generates its revenue primarily from the pharmaceuticals segment, amounting to CN¥1.32 billion.
Estimated Discount To Fair Value: 29.4%
InnoCare Pharma is trading 29.4% below its estimated fair value of HK$20.32, highlighting potential undervaluation based on cash flows. The company reported a significant reduction in net loss for the first half of 2025 and forecasts suggest it will become profitable within three years, with revenue growth expected to outpace the Hong Kong market at 22.8% annually. Recent product advancements, including novel ADCs and inhibitors, bolster its position in oncology therapeutics.
- Our comprehensive growth report raises the possibility that InnoCare Pharma is poised for substantial financial growth.
- Delve into the full analysis health report here for a deeper understanding of InnoCare Pharma.
Beiqi Foton MotorLtd (SHSE:600166)
Overview: Beiqi Foton Motor Co., Ltd. is involved in the manufacture and sale of commercial vehicles globally, with a market cap of CN¥22.88 billion.
Operations: The company's revenue primarily comes from the manufacture and sale of commercial vehicles worldwide.
Estimated Discount To Fair Value: 34.6%
Beiqi Foton Motor Ltd. is trading 34.6% below its estimated fair value of CNY 4.42, suggesting potential undervaluation based on cash flows. The company's net income for the first nine months of 2025 rose to CNY 1,112.65 million from CNY 432.18 million a year ago, with earnings per share increasing significantly. Despite a forecasted low return on equity of 10.9%, earnings are expected to grow at an impressive rate of over 38% annually, outpacing the Chinese market growth rate.
- The analysis detailed in our Beiqi Foton MotorLtd growth report hints at robust future financial performance.
- Get an in-depth perspective on Beiqi Foton MotorLtd's balance sheet by reading our health report here.
Summing It All Up
- Embark on your investment journey to our 270 Undervalued Asian Stocks Based On Cash Flows selection here.
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Looking For Alternative Opportunities?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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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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