3 Asian Stocks Estimated To Be Trading Up To 36% Below Intrinsic Value

As Asian markets navigate a complex landscape of inflationary pressures and trade tensions, investors are increasingly on the lookout for opportunities that may be undervalued amidst these challenges. Identifying stocks trading below their intrinsic value can offer potential advantages in such an environment, as they might provide a cushion against market volatility while presenting growth prospects when broader economic conditions stabilize.

Top 10 Undervalued Stocks Based On Cash Flows In Asia

Click here to see the full list of 258 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.

RemeGen (SEHK:9995)

Overview: RemeGen Co., Ltd. is a biopharmaceutical company focused on the discovery, development, and commercialization of biologics for autoimmune, oncology, and ophthalmic diseases in Mainland China and the United States, with a market cap of approximately HK$42.29 billion.

Operations: RemeGen generates revenue primarily from its biopharmaceutical research, service, production, and sales activities, totaling approximately CN¥1.91 billion.

Estimated Discount To Fair Value: 36%

RemeGen is trading at HK$69.8, significantly below its estimated fair value of HK$109.07, highlighting potential undervaluation based on cash flows. The company's revenue is projected to grow at 24.6% annually, outpacing the Hong Kong market's growth rate, and it is expected to achieve profitability in three years. Despite recent volatility and removal from a major index, strategic moves like licensing agreements and clinical advancements position RemeGen for future growth in the biotech sector.

• The growth report we've compiled suggests that RemeGen's future prospects could be on the up.
• Get an in-depth perspective on RemeGen's balance sheet by reading our health report here.

Sino Medical Sciences Technology (SHSE:688108)

Overview: Sino Medical Sciences Technology Inc. is a medical device company focused on the research, development, production, and distribution of interventional devices in China with a market cap of CN¥5.36 billion.

Operations: The company generates revenue of CN¥468.53 million from its medical products segment, specializing in interventional devices.

Estimated Discount To Fair Value: 19.6%

Sino Medical Sciences Technology, trading at CN¥12.88, is undervalued compared to its estimated fair value of CN¥16.02. The company recently became profitable, reporting a net income of CN¥2.97 million for Q1 2025 versus a loss last year. With forecasted revenue growth of 26.8% annually and earnings expected to grow significantly at 77.6% per year, it outpaces the Chinese market's growth rates despite low projected return on equity and large one-off items impacting results.

• Our expertly prepared growth report on Sino Medical Sciences Technology implies its future financial outlook may be stronger than recent results.
• Click here and access our complete balance sheet health report to understand the dynamics of Sino Medical Sciences Technology.

Fujian Star-net Communication (SZSE:002396)

Overview: Fujian Star-net Communication Co., LTD. offers ICT infrastructure and AI application solutions in China, with a market cap of CN¥15.22 billion.

Operations: The company generates revenue primarily from its Communication Equipment Manufacturing segment, which amounts to CN¥17.10 billion.

Estimated Discount To Fair Value: 30.5%

Fujian Star-net Communication, currently priced at CN¥25.85, is trading 30.5% below its estimated fair value of CN¥37.18, highlighting its undervaluation based on cash flows. The company's earnings grew by 22.4% last year and are forecasted to increase significantly at 27.3% annually, surpassing the Chinese market average growth rate of 23.4%. However, despite good relative value compared to peers and industry, it has an unstable dividend track record and a low projected return on equity of 11.2%.

• Insights from our recent growth report point to a promising forecast for Fujian Star-net Communication's business outlook.
• Click here to discover the nuances of Fujian Star-net Communication with our detailed financial health report.

Next Steps

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Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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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