Stock Analysis

3 Asian Stocks Possibly Trading At Discounts Of Up To 42.9%

SEHK:9863
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Amidst a backdrop of global economic uncertainties and fluctuating trade policies, Asian markets have been navigating through a complex landscape that has seen mixed performances across various indices. In this environment, identifying undervalued stocks can be particularly appealing to investors seeking potential opportunities; these stocks may offer value by trading below their intrinsic worth due to market mispricing or overlooked growth prospects.

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Top 10 Undervalued Stocks Based On Cash Flows In Asia

NameCurrent PriceFair Value (Est)Discount (Est)
Aidma Holdings (TSE:7373)¥1843.00¥3675.4949.9%
Shibaura Mechatronics (TSE:6590)¥6760.00¥13268.2649.1%
Sany Renewable EnergyLtd (SHSE:688349)CN¥22.70CN¥44.8849.4%
RACCOON HOLDINGS (TSE:3031)¥798.00¥1576.5249.4%
Jiangshan Oupai Door Industry (SHSE:603208)CN¥14.06CN¥27.6249.1%
Rakus (TSE:3923)¥2184.00¥4288.1749.1%
Wuxi Lead Intelligent EquipmentLTD (SZSE:300450)CN¥19.92CN¥39.0849%
Beijing Zhong Ke San Huan High-Tech (SZSE:000970)CN¥10.50CN¥20.6749.2%
HanJung Natural Connectivity System.co.Ltd (KOSDAQ:A107640)₩27400.00₩54530.8949.8%
ASMPT (SEHK:522)HK$53.40HK$105.0049.1%

Click here to see the full list of 264 stocks from our Undervalued Asian Stocks Based On Cash Flows screener.

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

Zhejiang Leapmotor Technology (SEHK:9863)

Overview: Zhejiang Leapmotor Technology Co., Ltd. focuses on the research, development, production, and sale of new energy vehicles in Mainland China and internationally, with a market capitalization of HK$79.62 billion.

Operations: The company's revenue primarily stems from its production, research and development, and sales of new energy vehicles, amounting to CN¥32.16 billion.

Estimated Discount To Fair Value: 29.9%

Zhejiang Leapmotor Technology is currently trading at HK$59.55, significantly below its estimated fair value of HK$84.97, presenting a potential undervaluation based on cash flows. The company's revenue is forecast to grow by 27.3% annually, outpacing the Hong Kong market average of 8.6%. Despite reporting a net loss of CNY 2,820.8 million for 2024, this marks an improvement from the previous year's larger loss, indicating progress toward profitability within three years.

SEHK:9863 Discounted Cash Flow as at May 2025
SEHK:9863 Discounted Cash Flow as at May 2025

Range Intelligent Computing Technology Group (SZSE:300442)

Overview: Range Intelligent Computing Technology Group Company Limited offers server hosting services to internet companies and large cloud vendors in China, with a market cap of CN¥83.61 billion.

Operations: The company generates revenue primarily through its IDC Services segment, which amounted to CN¥4.58 billion.

Estimated Discount To Fair Value: 42.9%

Range Intelligent Computing Technology Group, trading at CN¥48.57, is undervalued with a fair value estimate of CN¥85.13. Despite high debt levels and volatile share prices, its earnings are projected to grow 29.3% annually, surpassing the Chinese market average of 24.1%. Recent earnings showed a dip in net income to CN¥430.17 million for Q1 2025 from the previous year but included a robust buyback plan up to CN¥1 billion, enhancing shareholder value potential.

SZSE:300442 Discounted Cash Flow as at May 2025
SZSE:300442 Discounted Cash Flow as at May 2025

Elite Material (TWSE:2383)

Overview: Elite Material Co., Ltd. produces and sells copper clad laminates, electronic-industrial specialty chemicals, raw materials, and electronic components in Taiwan, China, and internationally with a market cap of NT$211.79 billion.

Operations: The company's revenue segments include copper clad laminates, electronic-industrial specialty chemicals and raw materials, and electronic components across Taiwan, China, and international markets.

Estimated Discount To Fair Value: 30%

Elite Material, trading at NT$611, is undervalued with a fair value estimate of NT$872.81. Recent Q1 2025 results showed sales rising to NT$21.68 billion from NT$12.9 billion the previous year, and net income increased to NT$3.47 billion from NT$1.98 billion, indicating strong cash flow support for its valuation. Despite share price volatility, earnings are forecasted to grow 17.18% annually, outpacing the Taiwan market's average growth rate of 14.1%.

TWSE:2383 Discounted Cash Flow as at May 2025
TWSE:2383 Discounted Cash Flow as at May 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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About SEHK:9863

Zhejiang Leapmotor Technology

Engages in the research and development, production, and sale of new energy vehicles in Mainland China and internationally.

Exceptional growth potential with flawless balance sheet.

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