Stock Analysis
- China
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- Consumer Services
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- SHSE:600730
Undiscovered Gems With Strong Potential For November 2024
Reviewed by Simply Wall St
As global markets grapple with rising U.S. Treasury yields and a cautious economic outlook, small-cap stocks have faced particular challenges, underperforming their larger counterparts in recent weeks. Despite this environment, the search for undiscovered gems continues to captivate investors who are keen on identifying stocks with strong potential for growth. In such conditions, a good stock is often characterized by its resilience to broader market pressures and its ability to capitalize on niche opportunities that may not be immediately apparent in more established sectors.
Top 10 Undiscovered Gems With Strong Fundamentals
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Etihad Atheeb Telecommunication | NA | 26.82% | 62.18% | ★★★★★★ |
| Ovostar Union | 0.01% | 10.19% | 49.85% | ★★★★★★ |
| Impellam Group | 31.12% | -5.43% | -6.86% | ★★★★★★ |
| Tianyun International Holdings | 10.09% | -5.59% | -9.92% | ★★★★★★ |
| First National Bank of Botswana | 24.77% | 10.64% | 15.30% | ★★★★★☆ |
| ZHEJIANG DIBAY ELECTRICLtd | 24.08% | 7.75% | 1.96% | ★★★★★☆ |
| A2B Australia | 15.83% | -7.78% | 25.44% | ★★★★☆☆ |
| Wilson | 64.79% | 30.09% | 68.29% | ★★★★☆☆ |
| Zahrat Al Waha For Trading | 80.05% | 4.97% | -15.99% | ★★★★☆☆ |
| Waja | 23.81% | 98.44% | 14.54% | ★★★★☆☆ |
Let's review some notable picks from our screened stocks.
China Hi-Tech Group (SHSE:600730)
Simply Wall St Value Rating: ★★★★☆☆
Overview: China Hi-Tech Group Co., Ltd. operates in the education and real estate leasing sectors in China with a market capitalization of approximately CN¥3.60 billion.
Operations: China Hi-Tech Group generates revenue primarily from its education and real estate leasing sectors. The company's financial performance is characterized by a focus on these two segments, contributing significantly to its overall revenue streams.
This year, China Hi-Tech Group has turned a corner by becoming profitable, with net income soaring to CNY 26.69 million from CNY 5.23 million last year, reflecting high-quality earnings. The company's basic earnings per share jumped to CNY 0.045 from CNY 0.009 over the same period, showcasing solid growth despite its small scale in the industry. While free cash flow remains negative, their debt-to-equity ratio is low at just 0.2%, suggesting manageable leverage levels and more cash than total debt on hand—an encouraging sign for future stability and potential expansion within the consumer services sector.
- Unlock comprehensive insights into our analysis of China Hi-Tech Group stock in this health report.
Explore historical data to track China Hi-Tech Group's performance over time in our Past section.
Xinjiang Xuefeng Sci-Tech(Group)Co.Ltd (SHSE:603227)
Simply Wall St Value Rating: ★★★★★★
Overview: Xinjiang Xuefeng Sci-Tech(Group) Co., Ltd, along with its subsidiaries, focuses on the research, development, production, and sale of civil explosives and has a market capitalization of CN¥9.32 billion.
Operations: Xinjiang Xuefeng Sci-Tech primarily generates revenue through the sale of civil explosives. The company's cost structure includes expenses related to research and development, production, and sales activities. Its financial performance can be influenced by factors such as changes in raw material costs and market demand for its products.
Xinjiang Xuefeng Sci-Tech, a company with high-quality earnings, has been navigating a challenging year. Despite negative earnings growth of 4%, its price-to-earnings ratio of 13.1x suggests it is valued attractively compared to the broader CN market at 34x. Over the past five years, it has significantly reduced its debt-to-equity ratio from 36.6% to 14.4%, enhancing financial stability. The firm reported CNY 4,560 million in sales for the first nine months of 2024, down from CNY 5,390 million last year, with net income also decreasing from CNY 737 million to CNY 602 million this year.
Jiangsu Tongrun Equipment TechnologyLtd (SZSE:002150)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Jiangsu Tongrun Equipment Technology Co., Ltd specializes in the production and sale of metal tool cabinets in China, with a market capitalization of CN¥4.91 billion.
Operations: Tongrun Equipment Technology's primary revenue stream is derived from the production and sale of metal tool cabinets. The company's net profit margin has shown fluctuations, reflecting changes in cost management and pricing strategies.
Jiangsu Tongrun Equipment Technology, a small player in the consumer durables sector, has shown impressive growth with earnings surging by 90.8% over the past year, outpacing the industry average of -2.1%. Despite a satisfactory net debt to equity ratio of 2.7%, its debt to equity ratio has climbed from 1% to 55.4% over five years, indicating increased leverage. The company's recent nine-month sales reached CN¥2.44 billion compared to CN¥1.68 billion last year, while net income rose from CN¥42.72 million to CN¥107.43 million, reflecting robust operational performance despite large one-off gains impacting results.
- Take a closer look at Jiangsu Tongrun Equipment TechnologyLtd's potential here in our health report.
Understand Jiangsu Tongrun Equipment TechnologyLtd's track record by examining our Past report.
Summing It All Up
- Explore the 4730 names from our Undiscovered Gems With Strong Fundamentals screener here.
- Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
- Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.
Ready For A Different Approach?
- 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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About SHSE:600730
China Hi-Tech Group
Engages in the education and real estate leasing businesses in China.
