Stock Analysis

Undiscovered Gems In Asia Promising Stocks For October 2025

Amid a backdrop of cautious sentiment in global markets, Asian stocks have shown resilience, with mainland Chinese indices posting gains and Japanese markets rising despite geopolitical uncertainties. In this dynamic environment, identifying promising small-cap stocks requires a keen eye for companies that not only navigate economic challenges but also leverage unique growth opportunities within their sectors.

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Top 10 Undiscovered Gems With Strong Fundamentals In Asia

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
FALCO HOLDINGS5.07%-0.61%-1.29%★★★★★★
Techno Ryowa1.51%9.64%32.40%★★★★★★
Lumax InternationalNA5.83%6.31%★★★★★★
Triocean Industrial Corporation41.36%46.98%79.47%★★★★★★
TCM Biotech International2.84%2.11%5.25%★★★★★★
Johnson Chemical Pharmaceutical Works9.07%9.87%8.78%★★★★★☆
Tait Marketing & Distribution0.69%8.02%10.61%★★★★★☆
HannStar Board96.47%-3.24%-4.55%★★★★☆☆
Hospital Corporation of China138.30%28.23%50.13%★★★★☆☆
Dong Fang Offshore41.99%33.40%39.04%★★★★☆☆

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

Underneath we present a selection of stocks filtered out by our screen.

China Post Technology (SHSE:688648)

Simply Wall St Value Rating: ★★★★★★

Overview: China Post Technology Co., Ltd. focuses on the research, design, production, sale, and servicing of intelligent logistics systems in China with a market cap of CN¥9.59 billion.

Operations: The primary revenue stream for China Post Technology is the sale of intelligent logistics system products, generating CN¥958.94 million.

China Post Technology, a nimble player in the industry, stands out with its impressive earnings growth of 16,887% over the past year, far surpassing the Machinery sector's 4%. The company reported CNY 414.22 million in sales for H1 2025 compared to CNY 367.17 million last year and achieved a net income of CNY 694.7 million from a previous loss of CNY 33.28 million. With no debt on its books now versus a debt-to-equity ratio of 22.5% five years ago and a favorable P/E ratio at 16.5x against the market's broader average of 45.5x, it seems well-positioned for potential growth despite recent share price volatility.

SHSE:688648 Debt to Equity as at Oct 2025
SHSE:688648 Debt to Equity as at Oct 2025

Xiamen Kingdomway Group (SZSE:002626)

Simply Wall St Value Rating: ★★★★★☆

Overview: Xiamen Kingdomway Group Company is involved in the manufacturing and sale of nutrition and health products both in China and internationally, with a market capitalization of approximately CN¥12.28 billion.

Operations: Xiamen Kingdomway Group generates revenue primarily from pharmaceutical raw materials, contributing CN¥58.40 million.

Xiamen Kingdomway Group, a notable player in the pharmaceutical sector, has demonstrated impressive earnings growth of 106% over the past year, significantly outpacing the industry average of -0.6%. Its price-to-earnings ratio stands at 26.8x, which is attractive compared to the broader CN market's 45.5x. Despite an increase in its debt-to-equity ratio from 27.6% to 36.7% over five years, it remains financially sound with more cash than total debt and positive free cash flow. Future earnings are expected to grow by approximately 14% annually, suggesting potential for continued robust performance in this competitive field.

SZSE:002626 Earnings and Revenue Growth as at Oct 2025
SZSE:002626 Earnings and Revenue Growth as at Oct 2025

Ruida FuturesLtd (SZSE:002961)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Ruida Futures Co., Ltd. operates as a futures company in China with a market capitalization of CN¥9.59 billion.

Operations: Ruida Futures generates revenue primarily from risk management and futures brokerage, with CN¥1.01 billion and CN¥627.15 million, respectively. The asset management business contributes CN¥197.12 million to the total revenue stream.

Ruida Futures, a dynamic player in the capital markets, has seen its earnings soar by 79.9% over the past year, outpacing industry growth of 57%. Trading at a price-to-earnings ratio of 20.3x, it offers good value compared to the broader CN market's 45.5x. Despite an increase in its debt-to-equity ratio from 19.5 to 25.3 over five years, Ruida holds more cash than total debt and boasts high-quality earnings with positive free cash flow of CNY 2.14 billion as of September 2024. Recent dividends highlight strong performance with net income climbing from CNY 136 million to CNY 228 million year-over-year for H1-2025.

SZSE:002961 Earnings and Revenue Growth as at Oct 2025
SZSE:002961 Earnings and Revenue Growth 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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