Stock Analysis

Undiscovered Gems in Asia to Explore This October 2025

As global markets navigate a complex landscape marked by cautious monetary policies and fluctuating economic indicators, Asia's small-cap sector presents intriguing opportunities for investors seeking growth potential. In this environment, identifying stocks with strong fundamentals and resilience to broader market sentiments becomes crucial, as these qualities can help uncover hidden gems within the dynamic Asian markets.

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Top 10 Undiscovered Gems With Strong Fundamentals In Asia

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Jiangsu Lianfa TextileLtd14.81%1.37%-20.31%★★★★★★
Chongqing Chuanyi Automation3.94%12.66%15.09%★★★★★★
Xuchang Yuandong Drive ShaftLtdNA-13.99%-30.38%★★★★★★
Zhejiang Yilida VentilatorLtd28.27%-0.09%60.03%★★★★★★
Shenzhen Keanda Electronic Technology3.22%-6.05%-14.83%★★★★★☆
Tianjin Lisheng PharmaceuticalLtd0.20%1.81%33.92%★★★★★☆
Qingdao CHOHO IndustrialLtd38.36%12.96%8.25%★★★★★☆
Zhejiang Jinghua Laser TechnologyLtd13.40%3.88%-2.51%★★★★★☆
Nanfang Black Sesame GroupLtd46.47%-12.88%19.25%★★★★☆☆
ShenZhen QiangRui Precision Technology37.71%45.22%15.86%★★★★☆☆

Click here to see the full list of 2380 stocks from our Asian Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

CNNC International (SEHK:2302)

Simply Wall St Value Rating: ★★★★★★

Overview: CNNC International Limited is an investment holding company involved in the exploration, sale, and trading of uranium across several countries including China, Hong Kong, Japan, the United States, the United Kingdom, Netherlands, and Canada with a market capitalization of approximately HK$2.64 billion.

Operations: The company generates revenue primarily from the trading of mineral properties, amounting to approximately HK$2.43 billion.

CNNC International, a relatively small player in the market, has shown impressive financial strides recently. For the half-year ending June 2025, sales skyrocketed to HK$592.11 million from just HK$6.4 million a year earlier, and net income turned positive at HK$10.36 million compared to a loss of HK$7.73 million previously. Basic earnings per share improved to HK$0.0212 from a loss of HK$0.0158 last year, reflecting strong operational performance and strategic execution that seems aligned with industry trends and growth opportunities in trade distribution sectors across Asia.

SEHK:2302 Earnings and Revenue Growth as at Oct 2025
SEHK:2302 Earnings and Revenue Growth as at Oct 2025

Shuangdeng Group (SEHK:6960)

Simply Wall St Value Rating: ★★★★★☆

Overview: Shuangdeng Group Co., Ltd. is a company that offers energy storage solutions in China, with a market capitalization of approximately HK$8.51 billion.

Operations: Shuangdeng Group generates revenue primarily from its batteries segment, which reported CN¥4.96 billion. The company's gross profit margin is a notable aspect of its financial profile, reflecting the efficiency of its core operations.

Shuangdeng Group, a promising player in the Asian market, recently completed an IPO raising HKD 849.66 million. The company reported sales of CNY 2.25 billion for the half year ending June 2025, up from CNY 1.78 billion a year prior, though net income slightly dipped to CNY 160.63 million from CNY 164.99 million. With earnings growth of 10.5% over the past year and trading at approximately 34% below its estimated fair value, Shuangdeng seems undervalued with potential upside in valuation terms while maintaining a satisfactory net debt to equity ratio of just 21%.

SEHK:6960 Earnings and Revenue Growth as at Oct 2025
SEHK:6960 Earnings and Revenue Growth as at Oct 2025

Zhejiang Risun Intelligent TechnologyLtd (SHSE:688215)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Zhejiang Risun Intelligent Technology Co., Ltd specializes in material transmission, warehousing, logistics, and sorting systems within industrial production in China, with a market cap of CN¥5.13 billion.

Operations: Risun Intelligent Technology generates revenue primarily from its material transmission, warehousing, logistics, and sorting systems. The company has a market cap of CN¥5.13 billion.

Zhejiang Risun Intelligent Technology has experienced a mixed financial performance recently. Earnings have grown by 55% over the past year, outpacing the Machinery industry's 4% growth, yet earnings declined by an average of 18.7% annually over five years. The debt to equity ratio rose from 9.2% to 30.4%, while net income for the half-year ending June 2025 fell to CN¥3.74M from CN¥5.14M a year prior, with basic earnings per share dropping to CN¥0.07 from CN¥0.13 in the same period last year. Additionally, a buyback completed in July saw repurchase of shares worth CN¥10M, indicating confidence despite volatile share prices recently observed.

SHSE:688215 Debt to Equity as at Oct 2025
SHSE:688215 Debt to Equity as at Oct 2025

Summing It All Up

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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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