Stock Analysis

Intsig Information And 2 Other Undiscovered Gems In China

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China's recent announcement of robust stimulus measures has ignited a surge in its stock markets, with the Shanghai Composite Index climbing 12.8% and the blue-chip CSI 300 soaring 15.7%. This positive momentum is creating an opportune environment for investors to explore lesser-known companies that could benefit from these economic tailwinds. In this context, discovering stocks like Intsig Information can be particularly rewarding. A good stock in today's market is one that not only shows strong fundamentals but also stands to gain from broader economic policies and sector-specific growth drivers.

Top 10 Undiscovered Gems With Strong Fundamentals In China

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Shanghai Chlor-Alkali Chemical7.56%3.92%3.37%★★★★★★
Shandong Sinoglory Health Food1.96%-5.12%9.16%★★★★★★
SinotherapeuticsNA76.64%0.81%★★★★★★
Center International GroupLtd28.69%3.14%-40.36%★★★★★★
Nanjing Well Pharmaceutical GroupLtd30.34%9.84%-2.45%★★★★★☆
Xinlei Compressor4.68%62.29%2.05%★★★★★☆
Qijing Machinery46.41%3.46%-1.40%★★★★★☆
Wuxi Delinhai Environmental TechnologyLtd4.33%-16.56%-40.58%★★★★☆☆
Anhui Liuguo Chemical104.32%11.19%46.31%★★★★☆☆
Huaiji Dengyun Auto-parts (Holding)Ltd67.58%11.72%-34.21%★★★★☆☆

Click here to see the full list of 918 stocks from our Chinese Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

Intsig Information (SHSE:688615)

Simply Wall St Value Rating: ★★★★★★

Overview: IntSig Information Co., Ltd. offers optical character recognition solutions to corporate clients and individuals globally, with a market cap of CN¥12.50 billion.

Operations: IntSig Information Co., Ltd. generates revenue primarily from its optical character recognition solutions offered to corporate clients and individuals worldwide. The company has a market cap of CN¥12.50 billion.

Intsig Information, a software company with a price-to-earnings ratio of 35x, is significantly undervalued compared to the industry average of 68.7x. The firm recently completed an IPO raising CNY 1.38 billion and reported half-year sales of CNY 688.18 million, up from CNY 564.79 million last year, with net income rising to CNY 220.75 million from CNY 186.83 million previously. Earnings growth outpaced the industry at 17.7%, highlighting its robust financial health and future potential in the market.

SHSE:688615 Earnings and Revenue Growth as at Sep 2024

CITIC Offshore Helicopter (SZSE:000099)

Simply Wall St Value Rating: ★★★★★★

Overview: CITIC Offshore Helicopter Co., Ltd. operates in the aviation industry in China and has a market cap of CN¥13.41 billion.

Operations: The company generates revenue primarily from its aviation services in China. It has a market cap of CN¥13.41 billion and reported total revenues in the millions of CN¥.

CITIC Offshore Helicopter, a notable player in the aviation sector, has demonstrated solid financial health with its debt to equity ratio dropping from 46.6% to 0.2% over five years. Recent earnings for the half-year ended June 2024 showed revenue of ¥962.05 million and net income of ¥132.41 million, slightly up from last year’s figures. The company repurchased shares this year, reflecting confidence in its future prospects amidst industry challenges and opportunities.

SZSE:000099 Debt to Equity as at Sep 2024

Shenzhen SDG ServiceLtd (SZSE:300917)

Simply Wall St Value Rating: ★★★★★★

Overview: Shenzhen SDG Service Co., Ltd. offers property management services in China and has a market cap of CN¥8.63 billion.

Operations: The company generates revenue primarily from property management services in China. With a market cap of CN¥8.63 billion, its financial performance is influenced by various cost factors and revenue streams within the property management sector.

Shenzhen SDG Service Ltd. has shown steady performance with earnings growing by 1.1% over the past year, outpacing the Real Estate industry’s -34.6%. The company reported half-year sales of CNY 1.34 billion, up from CNY 1.13 billion a year ago, although net income dipped slightly to CNY 57.59 million from CNY 60.14 million last year. Notably, SDG Service remains debt-free and had a special shareholders meeting in September to discuss amendments and additional transactions for 2024.

SZSE:300917 Earnings and Revenue Growth as at Sep 2024

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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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