Undiscovered Gems to Watch in January 2025

As global markets navigate a choppy start to the year, small-cap stocks have notably underperformed their large-cap counterparts, with the Russell 2000 Index dipping into correction territory. Amidst inflation concerns and political uncertainties impacting investor sentiment, identifying undiscovered gems in the market can offer unique opportunities for those seeking potential growth.

Top 10 Undiscovered Gems With Strong Fundamentals

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Riyadh Cement	NA	1.82%	-1.49%	★★★★★★
Wilson Bank Holding	NA	7.87%	8.22%	★★★★★★
Ovostar Union	0.01%	10.19%	49.85%	★★★★★★
Citra Tubindo	NA	11.06%	31.01%	★★★★★★
Parker Drilling	46.05%	0.86%	52.25%	★★★★★★
Aesler Grup Internasional	NA	-17.61%	-40.21%	★★★★★★
CTCI Advanced Systems	30.56%	24.10%	29.97%	★★★★★☆
Arab Insurance Group (B.S.C.)	NA	-59.20%	20.33%	★★★★★☆
MAPFRE Middlesea	NA	14.56%	1.77%	★★★★★☆
BOSQAR d.d	94.35%	39.11%	23.56%	★★★★☆☆

Click here to see the full list of 4620 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

Zhiyang Innovation Technology (SHSE:688191)

Simply Wall St Value Rating: ★★★★★☆

Overview: Zhiyang Innovation Technology Co., Ltd. is an artificial intelligence company based in China with a market capitalization of CN¥2.73 billion.

Operations: Zhiyang Innovation Technology generates its revenue primarily from artificial intelligence solutions. The company has a market capitalization of CN¥2.73 billion, indicating its scale in the industry.

Zhiyang Innovation Technology, a smaller player in the market, has shown promising signs with earnings growth of 27.7% over the past year, outpacing the electrical industry's modest 1.1%. The recent financials reveal sales climbing to CNY 675.99 million from CNY 562.95 million and net income reaching CNY 36.76 million compared to last year's CNY 33.14 million, indicating solid performance despite challenges over five years with a decline of 26.3% annually in earnings. With free cash flow turning positive and interest payments well-covered, Zhiyang seems positioned for stability amidst its evolving debt profile now at an 11.3% debt-to-equity ratio.

• Delve into the full analysis health report here for a deeper understanding of Zhiyang Innovation Technology.

• Understand Zhiyang Innovation Technology's track record by examining our Past report.

Jiangsu Jiangyin Rural Commercial BankLTD (SZSE:002807)

Simply Wall St Value Rating: ★★★★★★

Overview: Jiangsu Jiangyin Rural Commercial Bank Co., LTD operates as a rural commercial bank providing financial services in China, with a market cap of CN¥10.24 billion.

Operations: The bank's primary revenue streams include interest income from loans and advances, as well as fees and commissions from various financial services. A significant portion of its costs is attributed to interest expenses on customer deposits and borrowings. The net profit margin has shown variations over recent periods, reflecting changes in both income generation and cost management.

Jiangsu Jiangyin Rural Commercial Bank stands out with its robust financial health, boasting total assets of CN¥186.6 billion and equity of CN¥17.9 billion. Its earnings surged by 11.7% over the past year, outpacing the banking industry's 3.6% growth rate, highlighting its competitive edge in a challenging market environment. With customer deposits making up 87% of its liabilities, this bank enjoys a stable funding base that minimizes external borrowing risks. Trading at nearly 66% below estimated fair value suggests potential undervaluation, while maintaining an appropriate bad loans ratio at just 0.9%, indicating prudent risk management practices.

• Take a closer look at Jiangsu Jiangyin Rural Commercial BankLTD's potential here in our health report.

• Review our historical performance report to gain insights into Jiangsu Jiangyin Rural Commercial BankLTD's's past performance.

Suzhou Tianmai Thermal Technology (SZSE:301626)

Simply Wall St Value Rating: ★★★★★☆

Overview: Suzhou Tianmai Thermal Technology Co., Ltd. specializes in the development and production of thermal management solutions, with a market cap of CN¥10 billion.

Operations: Tianmai Thermal Technology's primary revenue stream is from its Electronic Components & Parts segment, generating CN¥939.63 million. The company has a market cap of approximately CN¥10 billion.

Suzhou Tianmai Thermal Technology has shown impressive growth, with earnings rising 28.7% over the past year, outpacing the Electronic industry’s 1.8%. Recent financials highlight a net income of CNY 140 million for the nine months ending September 2024, up from CNY 108 million in the previous year. The company’s basic earnings per share increased to CNY 1.62 from CNY 1.25 a year ago, reflecting robust performance despite market volatility. Additionally, its inclusion in key indices like Shenzhen Stock Exchange Composite Index underscores its growing market presence following a successful IPO raising approximately CNY 614 million in October 2024.

• Get an in-depth perspective on Suzhou Tianmai Thermal Technology's performance by reading our health report here.

• Assess Suzhou Tianmai Thermal Technology's past performance with our detailed historical performance reports.

Turning Ideas Into Actions

• Investigate our full lineup of 4620 Undiscovered Gems With Strong Fundamentals right here.
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Seeking Other Investments?

• 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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