November 2024 Penny Stocks With Promising Potential

Simply Wall St

Global markets have been experiencing fluctuations amid policy uncertainties and economic data releases, with U.S. stocks recently giving back some gains as investors react to potential changes under the incoming administration. In this context, penny stocks—often representing smaller or newer companies—remain a relevant investment area for those seeking affordability and growth potential. Despite being considered a somewhat outdated term, these stocks can offer opportunities when backed by strong financials, providing a unique avenue for investors to explore promising prospects in today's market landscape.

Top 10 Penny Stocks

NameShare PriceMarket CapFinancial Health Rating
BP Plastics Holding Bhd (KLSE:BPPLAS)MYR1.21MYR340.59M★★★★★★
DXN Holdings Bhd (KLSE:DXN)MYR0.48MYR2.39B★★★★★★
Rexit Berhad (KLSE:REXIT)MYR0.775MYR134.24M★★★★★★
Seafco (SET:SEAFCO)THB1.97THB1.6B★★★★★★
LaserBond (ASX:LBL)A$0.585A$68.57M★★★★★★
Hil Industries Berhad (KLSE:HIL)MYR0.87MYR288.79M★★★★★★
ME Group International (LSE:MEGP)£2.225£838.3M★★★★★★
Lever Style (SEHK:1346)HK$0.87HK$539.57M★★★★★★
Embark Early Education (ASX:EVO)A$0.80A$146.79M★★★★☆☆
Next 15 Group (AIM:NFG)£3.67£365M★★★★☆☆

Click here to see the full list of 5,818 stocks from our Penny Stocks screener.

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

China Zheshang Bank (SEHK:2016)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: China Zheshang Bank Co., Ltd. offers a range of commercial banking products and services in Mainland China and has a market cap of HK$81.59 billion.

Operations: The bank generates revenue of CN¥38.47 billion from its operations in Mainland China.

Market Cap: HK$81.59B

China Zheshang Bank, with a market cap of HK$81.59 billion, reported stable net income growth for the nine months ending September 2024 at CN¥12.91 billion, slightly up from CN¥12.75 billion the previous year. The bank's funding is primarily low-risk customer deposits, maintaining an appropriate loans-to-deposits ratio of 78%. Despite its relatively low return on equity of 7.9%, it trades at a good value compared to peers and industry standards. Recent board changes may impact governance stability temporarily as new independent directors are yet to be approved following resignations due to term limits.

SEHK:2016 Debt to Equity History and Analysis as at Nov 2024

Shenzhen Hemei GroupLTD (SZSE:002356)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Shenzhen Hemei Group Co., LTD. operates in the sale of clothing, accessories, and instrumentation products both in China and internationally, with a market cap of CN¥5.22 billion.

Operations: No specific revenue segments are reported for Shenzhen Hemei Group Co., LTD.

Market Cap: CN¥5.22B

Shenzhen Hemei Group Co., LTD. has shown revenue growth over the past year, with sales rising to CN¥157.14 million for the nine months ending September 2024, up from CN¥125.4 million a year ago, though it remains unprofitable with a net loss of CN¥31.89 million. The company benefits from having no debt and sufficient short-term assets (CN¥649.8M) to cover its liabilities (CN¥210.1M). Despite a relatively inexperienced board and ongoing losses, Shenzhen Hemei's cash runway is adequate for more than a year if current free cash flow trends persist without significant shareholder dilution recently observed.

SZSE:002356 Financial Position Analysis as at Nov 2024

FS Development Investment Holdings (SZSE:300071)

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: FS Development Investment Holdings offers marketing services in China, with a market capitalization of CN¥4.73 billion.

Operations: The company generates revenue of CN¥1.46 billion from its operations in China.

Market Cap: CN¥4.73B

FS Development Investment Holdings has reported revenue growth, with sales reaching CN¥1.05 billion for the nine months ending September 2024, compared to CN¥960.34 million a year ago. Despite this, the company remains unprofitable with a net loss of CN¥29.89 million and negative return on equity at -18.19%. The company's financial position is supported by short-term assets of CN¥1.2 billion exceeding both short-term and long-term liabilities, though it faces high share price volatility and less than a year of cash runway if free cash flow continues to decline at historical rates without meaningful shareholder dilution recently observed.

SZSE:300071 Debt to Equity History and Analysis as at Nov 2024

Key Takeaways

  • Embark on your investment journey to our 5,818 Penny Stocks selection here.
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Curious About Other Options?

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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