Undiscovered Gems in Global Markets To Watch This June 2025

As global markets navigate the complexities of escalating Middle East tensions and fluctuating economic indicators, small-cap stocks have been particularly impacted, with indexes like the S&P MidCap 400 and Russell 2000 experiencing notable declines. Despite these challenges, improved sentiment among small business owners and consumers suggests potential opportunities for discerning investors to identify promising yet overlooked stocks that could thrive in this environment.

Top 10 Undiscovered Gems With Strong Fundamentals Globally

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
VICOM	NA	5.01%	2.30%	★★★★★★
COSCO SHIPPING International (Hong Kong)	NA	0.57%	18.65%	★★★★★★
Chongqing Machinery & Electric	25.60%	7.97%	18.73%	★★★★★☆
Te Chang Construction	16.62%	15.59%	18.35%	★★★★★☆
Sparta	NA	-9.54%	-15.40%	★★★★★☆
TSTE	36.22%	3.96%	-8.49%	★★★★★☆
VCREDIT Holdings	115.47%	25.47%	30.34%	★★★★☆☆
Forth Smart Service	51.94%	-6.63%	-7.91%	★★★★☆☆
Practic	5.21%	4.49%	7.23%	★★★★☆☆
Darwin	3.03%	84.88%	5.63%	★★★★☆☆

Click here to see the full list of 3182 stocks from our Global Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Hubei Huaqiang High-Tech (SHSE:688151)

Simply Wall St Value Rating: ★★★★★★

Overview: Hubei Huaqiang High-Tech Co., Ltd. is engaged in the research, development, production, and sale of special protective equipment, pharmaceutical packaging, and medical devices in China with a market cap of CN¥6.74 billion.

Operations: Hubei Huaqiang High-Tech generates revenue through its segments of special protective equipment, pharmaceutical packaging, and medical devices. With a market cap of CN¥6.74 billion, the company focuses on these key areas to drive its financial performance. The company's net profit margin is a critical metric to consider when evaluating its profitability within these sectors.

Hubei Huaqiang High-Tech, a nimble player in the medical equipment sector, has seen its earnings grow by 107% over the past year, outpacing the industry average of -2%. Despite this strong performance, its earnings have declined by 81% annually over five years. The company is debt-free now compared to a debt-to-equity ratio of 3.6% five years ago. Recent results show sales at CN¥64.98 million for Q1 2025, down from CN¥121.34 million last year with net income dropping to CN¥1.88 million from CN¥14.15 million due to significant one-off gains impacting financials earlier this year.

• Click to explore a detailed breakdown of our findings in Hubei Huaqiang High-Tech's health report.

• Assess Hubei Huaqiang High-Tech's past performance with our detailed historical performance reports.

Jiangxi Xinyu Guoke Technology (SZSE:300722)

Simply Wall St Value Rating: ★★★★★★

Overview: Jiangxi Xinyu Guoke Technology Co., Ltd focuses on the manufacturing and sale of military products, with a market cap of CN¥8.61 billion.

Operations: Jiangxi Xinyu Guoke Technology derives its revenue primarily from the manufacturing and sale of military products. The company's financial performance is highlighted by a notable net profit margin trend, which has shown variation over recent periods.

Jiangxi Xinyu Guoke Technology, a nimble player in the tech sector, reported a noticeable dip in Q1 2025 sales to CNY 53.57 million from CNY 78.93 million last year, reflecting its volatile nature. Despite this, the company remains debt-free and boasts high-quality earnings. Over the past year, it achieved a net income of CNY 79.18 million on revenue of CNY 445.08 million for FY2024, showing resilience with growth from prior figures of CNY 75.73 million net income and CNY 388.61 million revenue in FY2023. The firm also declared dividends totaling CNY 0.50 per share for its shareholders recently.

• Navigate through the intricacies of Jiangxi Xinyu Guoke Technology with our comprehensive health report here.

• Review our historical performance report to gain insights into Jiangxi Xinyu Guoke Technology's's past performance.

Guangdong Dtech Technology (SZSE:301377)

Simply Wall St Value Rating: ★★★★★★

Overview: Guangdong Dtech Technology Co., Ltd. focuses on the research, development, production, and sale of tools in China with a market capitalization of CN¥12.28 billion.

Operations: Guangdong Dtech Technology generates revenue primarily through the sale of its tools in China. The company's financial performance is highlighted by a market capitalization of CN¥12.28 billion.

Guangdong Dtech Technology, a dynamic player in its field, has seen impressive earnings growth of 35% over the past year. The company's debt to equity ratio significantly improved from 50.4% to 8.3% over five years, reflecting robust financial management. Despite this progress, their share price has been volatile recently. In terms of recent performance, net income for the full year ending December 2024 was CNY 226.87 million compared to CNY 219.31 million previously, with sales reaching CNY 1.58 billion from CNY 1.32 billion last year, showcasing steady revenue growth amidst industry challenges.

• Click here to discover the nuances of Guangdong Dtech Technology with our detailed analytical health report.

• Examine Guangdong Dtech Technology's past performance report to understand how it has performed in the past.

Where To Now?

• Unlock more gems! Our Global Undiscovered Gems With Strong Fundamentals screener has unearthed 3179 more companies for you to explore.Click here to unveil our expertly curated list of 3182 Global Undiscovered Gems With Strong Fundamentals.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
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Contemplating Other Strategies?

• 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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