Stock Analysis

March 2025's Asian Stocks That May Be Trading Below Estimated Value

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As global markets grapple with tariff fears and inflation concerns, the Asian stock market has shown resilience, with some indices managing gains despite the broader uncertainty. In this environment, identifying undervalued stocks requires a keen focus on companies that demonstrate strong fundamentals and potential for growth amidst these challenging conditions.

Top 10 Undervalued Stocks Based On Cash Flows In Asia

NameCurrent PriceFair Value (Est)Discount (Est)
DIT (KOSDAQ:A110990)₩13940.00₩27509.1849.3%
Zhejiang Cfmoto PowerLtd (SHSE:603129)CN¥174.40CN¥347.8249.9%
Aidma Holdings (TSE:7373)¥1735.00¥3423.3949.3%
Hyosung Heavy Industries (KOSE:A298040)₩423000.00₩844530.7349.9%
OPT Machine Vision Tech (SHSE:688686)CN¥103.65CN¥204.4949.3%
BalnibarbiLtd (TSE:3418)¥1104.00¥2172.9649.2%
Food & Life Companies (TSE:3563)¥4221.00¥8305.9849.2%
ASMPT (SEHK:522)HK$58.15HK$115.9649.9%
Zhejiang Leapmotor Technology (SEHK:9863)HK$41.75HK$82.7049.5%
Doosan Fuel Cell (KOSE:A336260)₩15890.00₩31552.2049.6%

Click here to see the full list of 282 stocks from our Undervalued Asian Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

Rockchip Electronics (SHSE:603893)

Overview: Rockchip Electronics Co., Ltd. is a fabless IC design company based in China with a market cap of CN¥67.15 billion.

Operations: Rockchip Electronics Co., Ltd. generates revenue through its operations as a fabless IC design company in China.

Estimated Discount To Fair Value: 48.5%

Rockchip Electronics is trading at CN¥161.7, significantly below its estimated fair value of CN¥313.89, indicating it is undervalued based on cash flows. Despite recent share price volatility, earnings are expected to grow 37.47% annually over the next three years, outpacing the Chinese market's growth rate of 25.5%. However, its forecasted Return on Equity remains low at 18.5%. Recent profit growth was substantial, with a notable increase of over 300% last year.

SHSE:603893 Discounted Cash Flow as at Mar 2025

OPT Machine Vision Tech (SHSE:688686)

Overview: OPT Machine Vision Tech Co., Ltd. develops and supplies components and software for factory automation worldwide, with a market cap of CN¥12.67 billion.

Operations: The company's revenue segment includes Photographic Equipment & Supplies, generating CN¥831.18 million.

Estimated Discount To Fair Value: 49.3%

OPT Machine Vision Tech, trading at CN¥103.65, is significantly undervalued with an estimated fair value of CN¥204.49. Its earnings are projected to grow 43.26% annually, surpassing the Chinese market's growth rate of 25.5%. However, its Return on Equity forecast remains low at 9.2%. Recent share buybacks worth CN¥4.91 million may support shareholder value despite profit margins declining from last year's 23.2% to 14.5%.

SHSE:688686 Discounted Cash Flow as at Mar 2025

Guangzhou Ruoyuchen TechnologyLtd (SZSE:003010)

Overview: Guangzhou Ruoyuchen Technology Co., Ltd. offers brand integrated marketing solutions in China and has a market cap of CN¥6.18 billion.

Operations: The company generates revenue primarily from the E-Commerce Service Industry, amounting to CN¥1.69 billion.

Estimated Discount To Fair Value: 44.6%

Guangzhou Ruoyuchen Technology Ltd., priced at CN¥38.33, is trading well below its fair value estimate of CN¥69.15, making it undervalued based on cash flows. The company forecasts robust earnings growth at 37.5% annually, outpacing the Chinese market's 25.5% rate, despite a modest Return on Equity forecast of 13%. Recent share buyback plans worth up to CN¥200 million could enhance shareholder value and reflect management's confidence in future prospects.

SZSE:003010 Discounted Cash Flow as at Mar 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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