Stock Analysis

Longyan Kaolin Clay Among 3 Undiscovered Gems With Strong Fundamentals

SZSE:301458
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As global markets experience a rebound, with major U.S. stock indexes climbing higher due to easing core inflation and robust bank earnings, investors are increasingly looking at small-cap stocks for opportunities. The S&P MidCap 400 and Russell 2000 indices have shown significant gains, suggesting a renewed interest in companies that may not be household names but possess solid fundamentals. In this environment, identifying stocks with strong financial health and growth potential can be key to uncovering undiscovered gems like Longyan Kaolin Clay.

Top 10 Undiscovered Gems With Strong Fundamentals

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Ryoyu SystemsNA2.05%10.66%★★★★★★
Lungteh Shipbuilding60.46%29.56%44.51%★★★★★★
Wilson Bank HoldingNA7.87%8.22%★★★★★★
Ovostar Union0.01%10.19%49.85%★★★★★★
Wuxi Chemical EquipmentNA12.26%-0.74%★★★★★★
Ningbo Sinyuan Zm TechnologyNA18.08%9.75%★★★★★★
All E TechnologiesNA27.05%31.58%★★★★★★
Tureks Turizm Tasimacilik Anonim Sirketi4.71%50.82%59.08%★★★★★★
ZHEJIANG DIBAY ELECTRICLtd24.08%7.75%1.96%★★★★★☆
Oriental Precision & EngineeringLtd45.47%3.47%-1.67%★★★★★☆

Click here to see the full list of 4644 stocks from our Undiscovered Gems With Strong Fundamentals screener.

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

Longyan Kaolin Clay (SHSE:605086)

Simply Wall St Value Rating: ★★★★★★

Overview: Longyan Kaolin Clay Co., Ltd. is involved in the production and supply of kaolin for ceramic raw materials in China, with a market cap of CN¥5.11 billion.

Operations: Longyan Kaolin Clay generates revenue primarily from its specialty chemicals segment, amounting to CN¥314.38 million.

Longyan Kaolin Clay, a small player in the market, has shown resilience with an 8% earnings growth over the past year, outpacing the Basic Materials industry's -22.9%. The company is debt-free now, a significant improvement from five years ago when it had a debt-to-equity ratio of 9.9%, and this provides flexibility for future opportunities. Recent developments include Longyan Hongtong Investment acquiring a 3.35% stake for CNY 100 million at CNY 17.26 per share, signaling confidence in its prospects. With high-quality past earnings and positive free cash flow of CNY 122.77 million as of September 2024, Longyan seems well-positioned in its niche market segment.

SHSE:605086 Debt to Equity as at Jan 2025
SHSE:605086 Debt to Equity as at Jan 2025

Juneway Electronic Technology (SZSE:301458)

Simply Wall St Value Rating: ★★★★★☆

Overview: Juneway Electronic Technology Co., Ltd. designs, develops, and produces circuit protection components with a market capitalization of CN¥8.92 billion.

Operations: Juneway's primary revenue streams are from current sensing precision resistors and fuses, generating CN¥340.01 million and CN¥129.52 million, respectively. The company's net profit margin is a key financial metric to consider when evaluating its profitability.

Juneway Electronic Technology recently made a splash with its IPO, raising CNY 693.33 million and joining the Shenzhen Stock Exchange Composite Index, signaling increased visibility. Over the past year, Juneway's earnings rose by 4.2%, outpacing the electronic industry average of 2.3%. Despite having more cash than total debt, shares remain highly illiquid which might concern investors seeking liquidity. The company's high-quality earnings suggest a solid foundation, although data on free cash flow is unavailable to assess long-term sustainability fully. With these dynamics in play, Juneway presents an intriguing opportunity in the electronics sector amidst evolving market conditions.

SZSE:301458 Earnings and Revenue Growth as at Jan 2025
SZSE:301458 Earnings and Revenue Growth as at Jan 2025

AblePrint Technology (TPEX:7734)

Simply Wall St Value Rating: ★★★★★☆

Overview: AblePrint Technology Co., Ltd. is a process solution provider addressing process issues across various industries both in Taiwan and internationally, with a market capitalization of NT$34.95 billion.

Operations: AblePrint Technology generates revenue primarily from its Automation System Solutions and Pneumatic and Thermal Process Solutions segments, with the latter contributing NT$1.24 billion. The company's market capitalization stands at NT$34.95 billion.

AblePrint Technology, a nimble player in its field, showcases robust financial health with high-quality earnings and positive free cash flow. Despite facing a slight dip in earnings growth at -0.7%, the company remains profitable and covers interest payments comfortably. Recent figures reveal sales of TWD 394 million for Q3 2024, up from TWD 225 million the previous year, though net income fell to TWD 97.88 million from TWD 123.92 million. A follow-on equity offering of TWD 3.15 billion likely aims to bolster growth prospects amidst these mixed results, highlighting strategic financial maneuvers to enhance value creation.

TPEX:7734 Earnings and Revenue Growth as at Jan 2025
TPEX:7734 Earnings and Revenue Growth as at Jan 2025

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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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