Discovering Jiangsu Cai Qin Technology And 2 More Hidden Small Cap Treasures With Solid Foundations

As global markets navigate through a landscape of rising inflation and volatile treasury yields, small-cap stocks have been trailing behind their larger counterparts, with the Russell 2000 Index underperforming the S&P 500. Amidst these dynamics, identifying stocks with solid foundations becomes crucial for investors seeking stability and potential growth in less crowded corners of the market.

Top 10 Undiscovered Gems With Strong Fundamentals

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Padma Oil	0.73%	7.10%	12.89%	★★★★★★
Resource Alam Indonesia	2.66%	30.36%	43.87%	★★★★★★
Wilson Bank Holding	NA	7.87%	8.22%	★★★★★★
Cita Mineral Investindo	NA	-3.08%	16.56%	★★★★★★
Ovostar Union	0.01%	10.19%	49.85%	★★★★★★
Bakrie & Brothers	22.66%	7.78%	13.50%	★★★★★☆
Keir International	23.18%	49.21%	-17.98%	★★★★★☆
Li Ming Development Construction	236.64%	31.54%	34.00%	★★★★☆☆
TBS Energi Utama	77.67%	4.11%	-2.54%	★★★★☆☆
Practic	NA	3.63%	6.85%	★★★★☆☆

Click here to see the full list of 4712 stocks from our Undiscovered Gems With Strong Fundamentals screener.

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

Jiangsu Cai Qin Technology (SHSE:688182)

Simply Wall St Value Rating: ★★★★★★

Overview: Jiangsu Cai Qin Technology Co., Ltd specializes in the research, development, production, and sale of microwave dielectric ceramic components both domestically and internationally, with a market capitalization of CN¥7.46 billion.

Operations: Cai Qin Technology generates revenue primarily from its communication equipment manufacturing segment, which reported CN¥376.27 million. The company's financial performance is characterized by a focus on this core revenue stream.

Jiangsu Cai Qin Technology stands out with its high-quality earnings and a debt-free status, painting a promising picture. Over the past year, earnings surged by 45.1%, surpassing the Electronic industry's growth of 1.9%. Despite this recent uptick, it's important to note that earnings have decreased by 67.8% annually over the last five years. The company is forecasted to see revenue grow at an impressive rate of 34.15% per year, suggesting potential for future expansion within its sector. A special shareholders meeting scheduled for December highlights ongoing corporate governance activities in Zhangjiagang, Jiangsu China.

• Get an in-depth perspective on Jiangsu Cai Qin Technology's performance by reading our health report here.

• Examine Jiangsu Cai Qin Technology's past performance report to understand how it has performed in the past.

Guangzhou Metro Design & Research Institute (SZSE:003013)

Simply Wall St Value Rating: ★★★★★☆

Overview: Guangzhou Metro Design & Research Institute Co., Ltd. specializes in providing engineering services with a market capitalization of CN¥5.72 billion.

Operations: The primary revenue stream for Guangzhou Metro Design & Research Institute comes from engineering services, generating CN¥2.63 billion.

Guangzhou Metro Design & Research Institute, a promising player in the construction sector, has shown resilience with its earnings growth of 3.4% over the past year, outpacing the industry average of -3.9%. The company is trading at a favorable price-to-earnings ratio of 14.2x compared to the broader CN market's 37.4x, suggesting it may be undervalued relative to peers. With high-quality earnings and more cash than total debt, financial stability seems assured. Recent private placements indicate strategic moves for expansion or investment opportunities, hinting at potential future growth as they aim for a forecasted annual earnings increase of 13.69%.

• Delve into the full analysis health report here for a deeper understanding of Guangzhou Metro Design & Research Institute.

• Gain insights into Guangzhou Metro Design & Research Institute's past trends and performance with our Past report.

Tigerair Taiwan (TWSE:6757)

Simply Wall St Value Rating: ★★★★★★

Overview: Tigerair Taiwan Co., Ltd. operates as an airline service provider in Taiwan with a market capitalization of NT$39.38 billion.

Operations: The company generates revenue primarily from passenger and cargo air transportation services, totaling NT$16.06 billion.

Tigerair Taiwan seems to be navigating its growth phase with notable strides. Over the last year, earnings surged by 210%, outpacing the broader airline industry's 56% growth. The company's debt-to-equity ratio has impressively decreased from 24.5% to a mere 3.5% over five years, indicating prudent financial management. Additionally, Tigerair's recent follow-on equity offering raised TWD 581 million, potentially bolstering its capital structure further. Despite a volatile share price in recent months, it trades at nearly 59% below estimated fair value and boasts high-quality earnings with interest payments well covered by EBIT at a substantial multiple of 173 times.

• Unlock comprehensive insights into our analysis of Tigerair Taiwan stock in this health report.

• Learn about Tigerair Taiwan's historical performance.

Where To Now?

• Click here to access our complete index of 4712 Undiscovered Gems With Strong Fundamentals.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
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Searching for a Fresh Perspective?

• 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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