Stock Analysis

Discover JiangSu Changling HydraulicLtd And 2 Other Undiscovered Gems With Solid Potential

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In a global market where major indexes like the S&P 500 and Nasdaq Composite continue to reach record highs, small-cap stocks, as represented by the Russell 2000 Index, have recently faced some challenges. This divergence highlights the importance of identifying promising opportunities within smaller companies that may not yet be on investors' radars. A good stock in this context is one with solid fundamentals and potential for growth despite broader market fluctuations, such as JiangSu Changling Hydraulic Ltd and two other under-the-radar companies with strong potential.

Top 10 Undiscovered Gems With Strong Fundamentals

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Sugar TerminalsNA3.14%3.53%★★★★★★
PSC17.90%2.07%13.38%★★★★★★
Ovostar Union0.01%10.19%49.85%★★★★★★
Tianyun International Holdings10.09%-5.59%-9.92%★★★★★★
Thai Energy Storage Technology9.49%-1.42%1.73%★★★★★☆
National Investments Company K.S.C.P26.01%3.66%4.99%★★★★☆☆
Al-Ahleia Insurance CompanyK.P8.09%10.04%16.85%★★★★☆☆
A2B Australia15.83%-7.78%25.44%★★★★☆☆
Jamuna Bank85.07%7.37%-3.87%★★★★☆☆
Al-Deera Holding Company K.P.S.C6.11%51.44%59.77%★★★★☆☆

Click here to see the full list of 4621 stocks from our Undiscovered Gems With Strong Fundamentals screener.

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

JiangSu Changling HydraulicLtd (SHSE:605389)

Simply Wall St Value Rating: ★★★★★★

Overview: Jiangsu Changling Hydraulic Co., Ltd engages in the research, development, production, and sale of hydraulic components both in China and internationally, with a market cap of CN¥3.91 billion.

Operations: The company generates revenue through the sale of hydraulic components in domestic and international markets. It has a market capitalization of CN¥3.91 billion, reflecting its scale and presence in the industry.

JiangSu Changling Hydraulic, a small-cap player in the machinery sector, showcases resilience with its recent performance. Over the past year, earnings grew by 6.2%, surpassing the industry average of -0.4%. The company is debt-free, a significant improvement from five years ago when its debt-to-equity ratio stood at 1.4%. Its price-to-earnings ratio of 33.6x remains competitive against the broader CN market at 38x. Recent financials reveal sales of CNY 678 million for nine months ending September 2024, up from CNY 576 million last year; net income rose to CNY 91 million from CNY 77 million previously, reflecting strong operational efficiency and potential for future growth within its niche market segment.

SHSE:605389 Debt to Equity as at Dec 2024

Jiangsu Ankura Intelligent Power (SZSE:300617)

Simply Wall St Value Rating: ★★★★★★

Overview: Jiangsu Ankura Intelligent Power Co., Ltd. focuses on the development and production of intelligent power equipment, with a market cap of CN¥4.63 billion.

Operations: The primary revenue stream for Jiangsu Ankura Intelligent Power is its electric equipment segment, generating CN¥948.17 million.

Jiangsu Ankura Intelligent Power, a promising player in the electrical industry, showcases solid financial health with cash exceeding total debt and a reduced debt-to-equity ratio from 12.4 to 11.8 over five years. Despite recent challenges reflected in decreased net income of CNY 135.99 million compared to CNY 160.98 million last year, its earnings growth of 5.7% outpaces the industry's average of 1.1%. The company's P/E ratio at 26x is attractive against the CN market's average of 38x, suggesting potential value for investors seeking growth opportunities within this sector's dynamics.

SZSE:300617 Earnings and Revenue Growth as at Dec 2024

Shanghai National Center of Testing and Inspection for Electric Cable and Wire (SZSE:301289)

Simply Wall St Value Rating: ★★★★★☆

Overview: Shanghai National Center of Testing and Inspection for Electric Cable and Wire Co., Ltd. specializes in the testing and inspection of electric cables and wires, with a market capitalization of CN¥4.08 billion.

Operations: The company generates revenue primarily from research services, amounting to CN¥285.49 million.

Shanghai National Center of Testing and Inspection for Electric Cable and Wire, a small player in its niche, has shown promising financial resilience. Over the past five years, its debt to equity ratio increased slightly from 0% to 0.3%, yet it remains financially sound with more cash than total debt. The company reported a revenue increase to CNY 218 million for the first nine months of 2024, up from CNY 194 million last year. Net income also rose modestly to CNY 54 million compared to CNY 51 million previously, indicating steady growth despite industry challenges.

SZSE:301289 Debt to Equity as at Dec 2024

Key Takeaways

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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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