As trade tensions between the U.S. and China show signs of easing, Asian markets are experiencing a period of cautious optimism, with investors eyeing potential opportunities amid evolving economic policies and regional developments. In this context, identifying undervalued stocks becomes crucial as investors seek to capitalize on perceived discounts in the market.
Top 10 Undervalued Stocks Based On Cash Flows In Asia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Ningbo Sanxing Medical ElectricLtd (SHSE:601567) | CN¥25.60 | CN¥50.19 | 49% |
| Alexander Marine (TWSE:8478) | NT$142.00 | NT$280.34 | 49.3% |
| Wuxi Lead Intelligent EquipmentLTD (SZSE:300450) | CN¥19.92 | CN¥39.10 | 49.1% |
| Rakus (TSE:3923) | ¥2154.50 | ¥4285.76 | 49.7% |
| Jiangshan Oupai Door Industry (SHSE:603208) | CN¥14.06 | CN¥27.47 | 48.8% |
| Newborn Town (SEHK:9911) | HK$8.17 | HK$16.06 | 49.1% |
| Beijing Zhong Ke San Huan High-Tech (SZSE:000970) | CN¥10.50 | CN¥20.76 | 49.4% |
| Tonghua Dongbao Pharmaceutical (SHSE:600867) | CN¥7.23 | CN¥14.11 | 48.8% |
| China Ruyi Holdings (SEHK:136) | HK$2.04 | HK$4.07 | 49.9% |
| Everest Medicines (SEHK:1952) | HK$49.25 | HK$96.84 | 49.1% |
Let's take a closer look at a couple of our picks from the screened companies.
True Corporation (SET:TRUE)
Overview: True Corporation Public Company Limited, along with its subsidiaries, offers telecommunications and value-added services in Thailand with a market cap of THB418.08 billion.
Operations: The company generates revenue through its segments, including Mobile services at THB171.28 billion, Broadband Internet and Others at THB27.74 billion, and Pay TV services at THB7.00 billion.
Estimated Discount To Fair Value: 20.9%
True Corporation is trading at 20.9% below its estimated fair value of THB15.3, suggesting potential undervaluation based on cash flows. Despite a current net loss of THB10.97 billion for 2024, the company is forecasted to become profitable within three years with significant earnings growth expected annually at over 75%. Recent leadership restructuring aims to bolster its core digital and enterprise sectors, potentially enhancing future financial performance despite anticipated revenue declines of 0.2% per year.
- Our earnings growth report unveils the potential for significant increases in True Corporation's future results.
- Dive into the specifics of True Corporation here with our thorough financial health report.
Eastroc Beverage(Group) (SHSE:605499)
Overview: Eastroc Beverage(Group) Co., Ltd. is involved in the research, development, production, and sales of beverages in China with a market cap of CN¥148.72 billion.
Operations: The company generates revenue of CN¥17.20 billion from the production, sales, and wholesale of beverages and pre-packaged foods in China.
Estimated Discount To Fair Value: 22%
Eastroc Beverage(Group) is trading at 22% below its estimated fair value of CNY 366.82, indicating potential undervaluation based on cash flows. The company reported strong financial performance with Q1 2025 net income rising to CNY 980.01 million from CNY 663.88 million a year ago, driven by robust revenue growth. Despite an unstable dividend track record, Eastroc's earnings are forecasted to grow significantly over the next three years, outpacing market expectations for revenue growth.
- In light of our recent growth report, it seems possible that Eastroc Beverage(Group)'s financial performance will exceed current levels.
- Take a closer look at Eastroc Beverage(Group)'s balance sheet health here in our report.
Zhejiang Tianyu Pharmaceutical (SZSE:300702)
Overview: Zhejiang Tianyu Pharmaceutical Co., Ltd. is involved in the research, development, manufacture, and sale of pharmaceutical intermediates and APIs both in China and internationally, with a market cap of CN¥7.66 billion.
Operations: The company generates revenue through the production and sale of pharmaceutical intermediates and active pharmaceutical ingredients (APIs) for both domestic and international markets.
Estimated Discount To Fair Value: 31%
Zhejiang Tianyu Pharmaceutical is trading at 31% below its estimated fair value of CNY 32.27, highlighting its potential undervaluation based on cash flows. The company reported a significant rise in Q1 2025 net income to CNY 86.18 million from CNY 40.52 million the previous year, reflecting strong earnings growth prospects over the next three years that surpass market averages. Despite slower revenue growth forecasts compared to earnings, profitability improvements are evident.
- Insights from our recent growth report point to a promising forecast for Zhejiang Tianyu Pharmaceutical's business outlook.
- Unlock comprehensive insights into our analysis of Zhejiang Tianyu Pharmaceutical stock in this financial health report.
Make It Happen
- Navigate through the entire inventory of 275 Undervalued Asian Stocks Based On Cash Flows here.
- Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
- Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.
Contemplating Other Strategies?
- 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.
Valuation is complex, but we're here to simplify it.
Discover if True Corporation might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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