Stock Analysis

Zhang Jia Gang Freetrade Science&Technology GroupLtd And 2 Other Undiscovered Gems In Asia With Strong Fundamentals

SZSE:002204
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As global markets navigate a landscape marked by trade uncertainties and mixed performances across major indices, smaller-cap stocks have shown resilience, with indexes like the S&P MidCap 400 and Russell 2000 posting gains despite broader market challenges. In this context, identifying stocks with strong fundamentals becomes crucial for investors seeking stability and potential growth in the Asian market.

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Top 10 Undiscovered Gems With Strong Fundamentals In Asia

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Lion Rock Group9.41%15.39%13.20%★★★★★★
Central Forest GroupNA5.93%20.71%★★★★★★
Wuxi Chemical EquipmentNA12.65%0.91%★★★★★★
Namuga14.80%-3.26%30.46%★★★★★★
YagiLtd38.98%-8.93%16.36%★★★★★☆
Chongqing Machinery & Electric25.60%7.97%18.73%★★★★★☆
Shanghai Chlor-Alkali Chemical9.56%7.12%1.55%★★★★★☆
Shanghai Pioneer Holding5.59%4.81%18.86%★★★★★☆
Pizu Group Holdings48.10%-4.86%-19.23%★★★★☆☆
Fengyinhe Holdings0.60%38.63%65.41%★★★★☆☆

Click here to see the full list of 2652 stocks from our Asian Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

Zhang Jia Gang Freetrade Science&Technology GroupLtd (SHSE:600794)

Simply Wall St Value Rating: ★★★★★★

Overview: Zhang Jia Gang Freetrade Science & Technology Group Co., Ltd. operates through its subsidiaries in the loading, unloading, and storage of petrochemical products in China, with a market capitalization of approximately CN¥6.05 billion.

Operations: The company's primary revenue streams include Supply Chain Services (CN¥381.44 million) and Liquefied Storage (CN¥232.25 million), with significant contributions from Smart Logistics (CN¥218.51 million). The diverse service offerings highlight its focus on logistics and storage solutions within the petrochemical sector.

Zhang Jia Gang Freetrade Science & Technology Group, a smaller player in the market, has demonstrated impressive financial discipline with its debt to equity ratio dropping from 17.3% to 0.2% over five years and more cash than total debt. Despite a challenging year with earnings falling by 16.8%, it still outperformed the industry average decline of 28.2%. The company reported annual sales of CNY 893 million and net income of CNY 209 million for 2024, reflecting a dip from the previous year but remaining profitable with high-quality earnings and positive free cash flow, suggesting potential for future growth at an estimated rate of 7.53% annually.

SHSE:600794 Debt to Equity as at Apr 2025
SHSE:600794 Debt to Equity as at Apr 2025

Dalian Huarui Heavy Industry Group (SZSE:002204)

Simply Wall St Value Rating: ★★★★★☆

Overview: Dalian Huarui Heavy Industry Group Co., Ltd. operates as a major player in the heavy machinery industry, with a market capitalization of CN¥12.07 billion.

Operations: Dalian Huarui Heavy Industry Group generates revenue primarily from its heavy machinery products and services. The company focuses on optimizing its cost structure to enhance profitability, reflected in a net profit margin trend that provides insights into its financial health.

Dalian Huarui Heavy Industry Group, a smaller player in the machinery sector, has shown impressive earnings growth of 37.1% over the past year, outpacing the industry's 1.4%. Despite a volatile share price recently, its P/E ratio of 24.2x suggests it offers better value compared to the broader CN market at 35.8x. The company reported sales of CNY 14.28 billion for 2024, up from CNY 12 billion in the previous year, with net income rising to CNY 501 million from CNY 363 million. A recent dividend increase further underscores its robust financial health and commitment to shareholder returns.

SZSE:002204 Debt to Equity as at Apr 2025
SZSE:002204 Debt to Equity as at Apr 2025

Sanhe Tongfei Refrigeration (SZSE:300990)

Simply Wall St Value Rating: ★★★★★★

Overview: Sanhe Tongfei Refrigeration Co., Ltd. specializes in the manufacturing and sale of industrial temperature control products in China, with a market cap of CN¥7.59 billion.

Operations: Sanhe Tongfei generates revenue primarily through the sale of industrial temperature control products. The company's financial performance is highlighted by a net profit margin of 10.5%, reflecting its ability to convert sales into profit efficiently.

Sanhe Tongfei Refrigeration, a nimble player in the machinery sector, recently announced a CNY 3.00 dividend per 10 shares for 2024. The company's Q1 2025 results show impressive growth with sales jumping to CNY 573.62 million from last year's CNY 274.43 million, and net income soaring to CNY 61.91 million from CNY 5.14 million. With no debt on its books compared to five years ago when it had a debt-to-equity ratio of just over zero, Sanhe Tongfei appears financially sound and poised for continued expansion in earnings, projected at an annual growth rate of over thirty-five percent.

SZSE:300990 Debt to Equity as at Apr 2025
SZSE:300990 Debt to Equity as at Apr 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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