Stock Analysis

Discovering Undiscovered Gems in Asia This September 2025

As global markets navigate economic shifts, the Asian market presents intriguing opportunities, particularly for small-cap stocks that are often more sensitive to interest rate movements. With recent developments in key indices and economic indicators painting a complex picture, identifying promising stocks requires a keen eye for companies with strong fundamentals and potential resilience in fluctuating conditions.

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Top 10 Undiscovered Gems With Strong Fundamentals In Asia

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Shandong Link Science and TechnologyLtd9.09%11.63%18.76%★★★★★★
Lelon Electronics17.92%5.19%9.27%★★★★★★
Shanghai Guangdian Electric Group1.14%-2.80%-30.27%★★★★★★
Shenzhen Tongye TechnologyLtd11.85%16.14%-6.98%★★★★★★
Wison Engineering Services28.12%-0.65%12.25%★★★★★★
Daoming Optics&ChemicalLtd33.44%2.17%6.83%★★★★★☆
Jiangsu Rainbow Heavy Industries20.56%20.70%-0.41%★★★★★☆
TianJin JinRong TianYu Precision Machinery41.98%12.40%7.00%★★★★★☆
DYPNFLtd26.11%13.24%0.06%★★★★★☆
Luyuan Group Holding (Cayman)79.86%9.14%20.10%★★★★☆☆

Click here to see the full list of 2407 stocks from our Asian Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Dlg Exhibitions & Events (SHSE:600826)

Simply Wall St Value Rating: ★★★★★☆

Overview: Dlg Exhibitions & Events Corporation Limited, along with its subsidiaries, specializes in offering conference and exhibition services across China with a market capitalization of CN¥9.23 billion.

Operations: Dlg Exhibitions & Events generates revenue primarily from its trading segment, totaling CN¥1.61 billion.

Dlg Exhibitions & Events, a company with a market presence in Asia, has shown significant earnings growth of 71% over the past year, outpacing the Trade Distributors industry which saw a -21.8% change. Despite this growth, recent financial results for the half-year ended June 2025 indicate sales of CNY 548.83 million and net income of CNY 56.93 million, both down from last year's figures. The company's price-to-earnings ratio stands at 32.8x, offering better value compared to the broader CN market at 44.4x. With more cash than total debt and positive free cash flow generation, its financial health appears robust despite some volatility in share price recently observed over three months.

SHSE:600826 Earnings and Revenue Growth as at Sep 2025
SHSE:600826 Earnings and Revenue Growth as at Sep 2025

Dai-Dan (TSE:1980)

Simply Wall St Value Rating: ★★★★★★

Overview: Dai-Dan Co., Ltd. specializes in the design, supervision, and construction of electrical, air conditioning, plumbing and sanitary, and firefighting facilities works in Japan with a market cap of ¥265.60 billion.

Operations: Dai-Dan generates revenue primarily from its Equipment Construction Business, which reported ¥278.55 billion. The company's financial performance can be analyzed through its net profit margin, which reflects the efficiency of converting revenue into actual profit.

Dai-Dan, a small player in the construction sector, has shown impressive earnings growth of 138.9% over the past year, far outpacing the industry's 19.4%. Its debt to equity ratio has improved significantly from 7.6% to 3.1% in five years, indicating prudent financial management. Despite high volatility in its share price recently, Dai-Dan trades at nearly half its estimated fair value and offers good relative value compared to peers. The company is free cash flow positive and holds more cash than total debt, suggesting a robust financial position amidst industry fluctuations.

TSE:1980 Earnings and Revenue Growth as at Sep 2025
TSE:1980 Earnings and Revenue Growth as at Sep 2025

Wacoal Holdings (TSE:3591)

Simply Wall St Value Rating: ★★★★★★

Overview: Wacoal Holdings Corp. is a global company involved in the manufacturing, wholesale, and retail sale of intimate apparel, outerwear, sportswear, and other textile products across Japan, Asia, Oceania, the United States, and Europe with a market capitalization of ¥293.13 billion.

Operations: Wacoal Holdings generates revenue primarily from its Wacoal Business, with ¥88.21 billion coming from domestic operations and ¥79.87 billion from abroad. The Peach John Business contributes an additional ¥10.85 billion to the company's revenue streams.

This under-the-radar player, Wacoal Holdings, has shown resilience in the luxury industry with a recent turn to profitability. Over the past five years, its debt-to-equity ratio improved from 19.4% to 6.3%, indicating stronger financial health. The company is free cash flow positive and recently completed a share buyback of approximately 1.59% worth ¥3,968 million (US$27 million). Despite these positives, earnings are expected to decline by an average of 47% annually over the next three years. For fiscal year ending March 2026, projected revenue stands at ¥187 billion (US$1.26 billion), reflecting cautious optimism amidst challenges ahead.

TSE:3591 Earnings and Revenue Growth as at Sep 2025
TSE:3591 Earnings and Revenue Growth as at Sep 2025

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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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