Undiscovered Gems in China To Watch This September 2024

As global markets grapple with economic uncertainties and mixed performance across key indices, the Chinese market has seen a notable retreat amidst weak corporate earnings and economic data. Despite these challenges, opportunities still exist for discerning investors who can identify stocks with strong fundamentals and growth potential. In this climate, finding a good stock often means looking beyond immediate market fluctuations to focus on companies that exhibit resilience, solid financial health, and innovative business models. Here are three undiscovered gems in China to watch this September 2024.

Top 10 Undiscovered Gems With Strong Fundamentals In China

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Shenzhen TVT Digital Technology	2.79%	13.26%	34.92%	★★★★★★
Zhejiang Haisen Pharmaceutical	0.09%	2.45%	10.43%	★★★★★★
Hangzhou Fortune Gas Cryogenic Group	8.87%	3.45%	14.20%	★★★★★★
Shandong Sinoglory Health Food	1.96%	-5.12%	9.16%	★★★★★★
Sublime China Information	NA	6.24%	1.49%	★★★★★★
Ningbo Sinyuan Zm Technology	NA	15.67%	9.90%	★★★★★★
Tibet Development	52.25%	-1.03%	55.10%	★★★★★★
Zhejiang Chinastars New Materials Group	43.38%	-3.60%	2.29%	★★★★★☆
Silvery Dragon Prestressed MaterialsLTD Tianjin	22.53%	0.77%	-3.26%	★★★★☆☆
Baoding Technology	69.11%	37.22%	43.31%	★★★★☆☆

Click here to see the full list of 954 stocks from our Chinese Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Ways ElectronLtd (SHSE:605218)

Simply Wall St Value Rating: ★★★★★☆

Overview: Ways Electron Ltd (ticker: SHSE:605218) focuses on the research and development, design, manufacture, and sale of electronic components with a market cap of CN¥5.15 billion.

Operations: Ways Electron Ltd generates revenue primarily through the sale of electronic components. The company has a market cap of CN¥5.15 billion.

Ways Electron Ltd. saw its earnings grow by 3.3% over the past year, outpacing the Electronic industry’s -4.5%. However, its debt to equity ratio increased from 3.2 to 6.2 over five years, suggesting rising leverage concerns. For the first half of 2024, revenue reached CNY 889.4 million compared to CNY 651.72 million last year, but net income fell to CNY 19.31 million from CNY 36.52 million a year ago due to higher expenses or other operational challenges likely impacting profitability.

• Get an in-depth perspective on Ways ElectronLtd's performance by reading our health report here.

• Examine Ways ElectronLtd's past performance report to understand how it has performed in the past.

Shenzhen SEGLtd (SZSE:000058)

Simply Wall St Value Rating: ★★★★★★

Overview: Shenzhen SEG Co., Ltd operates in the electronics market business in China, with a market cap of CN¥8.38 billion.

Operations: Shenzhen SEG Co., Ltd generates revenue primarily from its electronics market business in China. The company has a market cap of CN¥8.38 billion.

Shenzhen SEG Ltd. has shown impressive earnings growth of 450.9% over the past year, significantly outpacing the Real Estate industry’s -26.5%. The company’s debt to equity ratio has improved from 88% to 33.3% in five years, indicating better financial health. Despite a volatile share price in recent months, SEG's net income for the half-year ended June 2024 was CN¥50.93 million, down from CN¥138.37 million last year due to lower sales and a large one-off gain impacting results.

• Dive into the specifics of Shenzhen SEGLtd here with our thorough health report.

• Evaluate Shenzhen SEGLtd's historical performance by accessing our past performance report.

Poly Plastic Masterbatch (SuZhou)Ltd (SZSE:300905)

Simply Wall St Value Rating: ★★★★★☆

Overview: Poly Plastic Masterbatch (SuZhou) Co., Ltd engages in the research and development, production, and sale of fiber masterbatches in China and internationally with a market cap of CN¥4.89 billion.

Operations: Poly Plastic Masterbatch (SuZhou) Co., Ltd generates its revenue primarily from the industrial segment, amounting to CN¥1.39 billion. The company's market cap stands at CN¥4.89 billion.

Poly Plastic Masterbatch (SuZhou) Ltd. has exhibited substantial growth, with earnings surging by 99.5% in the past year, outpacing the Chemicals industry’s -7.4%. The company reported a net income of CN¥55.4M for the half-year ending June 30, 2024, up from CN¥40.78M a year prior. Sales reached CN¥654.17M compared to last year's CN¥462.92M, reflecting robust performance despite volatile share prices over recent months and significant one-off gains impacting results.

• Unlock comprehensive insights into our analysis of Poly Plastic Masterbatch (SuZhou)Ltd stock in this health report.

• Review our historical performance report to gain insights into Poly Plastic Masterbatch (SuZhou)Ltd's's past performance.

Taking Advantage

• Delve into our full catalog of 954 Chinese Undiscovered Gems With Strong Fundamentals here.
• 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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Looking For Alternative Opportunities?

• 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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